Energy stocks snapped out of a sluggish opening Thursday as firmer crude-oil and natural-gas prices gave investors an excuse to step back into the sector with some conviction following three days of range-bound trade.
The Amex Oil Index (XOI : 1,323.39, +17.61, +1.3% ) , after drifting aimlessly in the first hour of trade, was up 0.7%, extending Wednesday's 0.4% gain. The Amex Natural Gas Index (XNG : 501.89, +4.60, +0.9% ) was up 0.2%, reversing its weaker open, while the Philadelphia Oil Service Index ($OSX : 244.98, +2.13, +0.9% ) was up 0.3%.
Despite a bearish 1.7 million-barrel rise in gasoline inventories reported Wednesday by the Energy Information Administration, analysts point to a utilization rate of just under 90%, which is low for this time of year and a major reason for gasoline stockpiles languishing well below the five-year average seasonal low.
On the brokerage front, Oppenheimer reiterated its buy rating on Exxon Mobil Corp. (XOM :81.83, +0.38, +0.5% ) . The stock, part of the Dow Jones Industrial Average (.DJI :13,476.16, -11.37, -0.1% ) , was up 0.3%. Shares of Royal Dutch Shell Plc (RDSA : 72.45, +1.94, +2.8% ) were leading percentage gainers among the big integrated oil companies, up 2.7% in New York.
Blogalaxia Tags: Shell,oil stocks,ExxonMobil
The Amex Oil Index (XOI : 1,323.39, +17.61, +1.3% ) , after drifting aimlessly in the first hour of trade, was up 0.7%, extending Wednesday's 0.4% gain. The Amex Natural Gas Index (XNG : 501.89, +4.60, +0.9% ) was up 0.2%, reversing its weaker open, while the Philadelphia Oil Service Index ($OSX : 244.98, +2.13, +0.9% ) was up 0.3%.
Helping attract buyers was an Energy Information Administration report that U.S. natural gas supplies in storage rose 95 billion cubic feet last week, a bit below the 98 billion cubic feet many traders had been looking for. The report triggered a modest 1.5% gain in the June natural gas contract on the New York Mercantile Exchange.
Backing the move, crude for June delivery was also up, advancing 85 cents to $63.40 a barrel on the Nymex, with the June reformulated gasoline contract up 2.2%, hitting an all-time intraday high of $2.41 a gallon. The surge in gasoline prices stems from a host of refinery problems dogging the sector.
Valero Energy Corp. (VLO :73.15, +1.12, +1.6% ) is working to bring its Houston refinery back up to full production following problems this week with the plant's boiler. After taking a beating for the outage Wednesday, Valero stock was up 1% early Thursday.
Valero Energy Corp. (VLO :73.15, +1.12, +1.6% ) is working to bring its Houston refinery back up to full production following problems this week with the plant's boiler. After taking a beating for the outage Wednesday, Valero stock was up 1% early Thursday.
Despite a bearish 1.7 million-barrel rise in gasoline inventories reported Wednesday by the Energy Information Administration, analysts point to a utilization rate of just under 90%, which is low for this time of year and a major reason for gasoline stockpiles languishing well below the five-year average seasonal low.
On the brokerage front, Oppenheimer reiterated its buy rating on Exxon Mobil Corp. (XOM :81.83, +0.38, +0.5% ) . The stock, part of the Dow Jones Industrial Average (.DJI :13,476.16, -11.37, -0.1% ) , was up 0.3%. Shares of Royal Dutch Shell Plc (RDSA : 72.45, +1.94, +2.8% ) were leading percentage gainers among the big integrated oil companies, up 2.7% in New York.
Blogalaxia Tags: Shell,oil stocks,ExxonMobil
