Shares of oil and gas companies rose Friday despite lower commodity prices as Wall Street managed to stay firm following the February jobs report.
The Amex Oil Index (XOI :1,157.38, +6.13, +0.5% ) rose 0.8% to 1,159.92 points as crude for April delivery fell 89 cents to $60.75 a barrel. The Amex Natural Gas Index (XNG : 455.37, +2.44, +0.5% ) rose 0.7% to 456.23 points as natural gas fell modestly to $7.17 per million British thermal units. The Philadelphia Oil Service Index ($OSX : 203.75, +0.38, +0.2% ) rose 0.5% to 204.32 points.
Since last week's market sell-off shocked global equities markets, shares of oil and gas companies have been more closely aligned to broader market movements rather than the ups and downs of oil prices. On the oil index, Valero Energy Corp. (VLO : 60.73, +0.73, +1.2% ) leapt ahead of its peers, rising 1.6% to $60.98. Sunoco Inc. (SUN : 65.78, +0.74, +1.1% ) rose 1.5% to $66.
The majors, which have so far lagged the index this year, were holding up well against their peers with the notable exception of Exxon Mobil Corp. (XOM :71.59, -0.26, -0.4% ) , which was flat at $71.88 and moving back and forth between red and black. Late Thursday, Dow Jones Newswires reported that Venezuela's tax agency shut down the industry giant's Cerro Negro administrative offices for tax violations. See Full Story.
Venezuela's Hugo Chavez has set his sights on Exxon's heavy crude project in the Orinoco river basin, announcing the state will assume a majority stake in the multi-billion dollar development by May 1.
Exxon's Chief Executive Rex Tillerson told Dow Jones that the company would walk away from the oil project if it fails to agree with the government on a transfer of ownership. MarketWatch
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