Energy stocks resumed their upward trajectory Monday as investors sized up continuing supply disruptions in Nigeria's oil fields and slim gasoline inventories in the United States as the world's biggest consumer of the fuel gears up for the summer driving season.
Early action sent the Amex Oil Index (XOI : 1,303.28, +6.42, +0.5% ) up 0.3%, building on Friday's big 1.9% gain. The Amex Natural Gas Index (XNG : 499.89, +4.41, +0.9% ) was also up 0.3% while the Philadelphia Oil Service Index ($OSX :242.32, +0.44, +0.2% ) was down 0.2%, falling off a 0.6% advance in opening trades.
Crude oil for June delivery was supporting the sector. While backing down from earlier highs, the contract was still up 23 cents at $62.60 a barrel, adding to Friday's 56-cent advance. See Futures Movers.
A looming two-day general strike in Nigeria to protest alleged vote-rigging in the recent elections was cited as yet another reason to fret over the flow of supplies from the OPEC nation. Nigeria's oil fields have been rocked by a recent flare-up in violent protests and kidnappings, especially in the Niger Delta region.
Meanwhile, gasoline prices continue to notch new highs in the United States. Regular unleaded now fetches, on average, $3.07 a gallon at the pump, an all-time high, according to the AAA.
Tight gasoline supplies continue to support shares of top refiners such as Valero Energy Corp. (VLO :74.23, +0.52, +0.7% ) , which was showing a 1% advance early Monday to lead percentage gainers in the Amex Oil Index.
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