Energy stocks accelerated their gains Wednesday despite overall stock market weakness as the latest data revealed tighter gasoline supplies for the first time in three weeks and crude oil future pushed near the $75 mark.
The Amex Oil Index (XOI :1,494.41, +20.89, +1.4% ) rose 0.9% to 1,486, reflecting fresh data showing a drop of 2.3 million barrels of gasoline for the week ended July 13 to 203.3 million, according to the Energy Department. Crude supplies fell 500,000 barrels to 352.1 million.
August crude rose 80 cents at $74.82 a barrel. Tempering the data, however, was an increase in refinery utilization to 91% from 90.2% in the week-ago period.
Meanwhile, coal stocks moved into the red on a downgrade by Citi on stubborn stockpiles and hostile politics.
In a sign of keen Wall Street interest in energy partnerships, Semgroup Energy Partners (SGLP:29.32, +7.32, +33.3% ) priced 12.5 million units at $22 a share, raising $275 million, in its initial public offering. The stock opened at $29.75 a share and changed hands at $30.12 for a gain of 37%.
Sings of a robust debut came as the energy firm priced above its $19-$21 range.
Tags: Semgroup,ExxonMobil
The Amex Oil Index (XOI :1,494.41, +20.89, +1.4% ) rose 0.9% to 1,486, reflecting fresh data showing a drop of 2.3 million barrels of gasoline for the week ended July 13 to 203.3 million, according to the Energy Department. Crude supplies fell 500,000 barrels to 352.1 million.
August crude rose 80 cents at $74.82 a barrel. Tempering the data, however, was an increase in refinery utilization to 91% from 90.2% in the week-ago period.
The Amex Natural Gas Index (XNG : 529.00, +10.97, +2.1% ) led gains in the energy sector with a robust rise of 1.7% to 526.93. The Philadelphia Oil Service Index ($OSX : 274.00, +5.08, +1.9% ) advanced 1.3%. Among the big oil firms, Exxon (XOM : 91.15, +2.06, +2.3% ) led gains with a rise of 1.9% to $90.79.
Meanwhile, coal stocks moved into the red on a downgrade by Citi on stubborn stockpiles and hostile politics.
"We are growing concerned that pro-coal data points are failing to translate into utility stockpile drawdown as natural gas takes share," Citi analysts John H. Hill and Graham Wark said in a note to clients. "If stockpiles remain elevated into autumn, the standoff with utilities may persist into 2008, at which point election politics are likely to turn bestial for coal."
Arch Coal (ACI :34.46, -0.13, -0.4% ) fell 0.6% to $34.40. Foundation Coal (FCL : 38.35, -0.51, -1.3% ) dropped 2.5% to $37.88. Peabody Energy (BTU : 47.14, +0.31, +0.7% ) reversed course from the red and gained 9 cents to 46.92. Plains Exploration & Production (PXP : 49.46, +1.58, +3.3% ) rebounded 2.8% to $49.25, the day after it set plans to buy Pogo (PPP : 58.19, +0.69, +1.2% ) ahead of a new master limited partnership. See full story.
Analysts from Sterne Agree said the deal will be "nicely accretive" to Plains' bottom line and "we view the deal quite positively."
In a sign of keen Wall Street interest in energy partnerships, Semgroup Energy Partners (SGLP:29.32, +7.32, +33.3% ) priced 12.5 million units at $22 a share, raising $275 million, in its initial public offering. The stock opened at $29.75 a share and changed hands at $30.12 for a gain of 37%.
Sings of a robust debut came as the energy firm priced above its $19-$21 range.
Via: MarketWatch
by Steve Gelsi
Tags: Semgroup,ExxonMobil
