eNergy Stocks: Oil prices, Wall Street pressure energy sector

by Jasmina Kelemen
Shares of oil and gas companies headed south early Monday as crude prices fell almost 2% and weakness in global markets restrained Wall Street's attempts to break even.

The Amex Oil Index (XOI :1,118.11, -3.92, -0.3% ) was off 0.8% to 1,113.36 points as crude for April delivery dropped $1.19 to $60.45 a barrel. The Amex Natural Gas Index (XNG : 446.11, -0.32, -0.1% ) fell 0.5% to 444.28 points as natural gas rose 0.8% to $7.3 per million British thermal units. The Philadelphia Oil Service Index ($OSX : 194.32, -0.80, -0.4% ) was trading just under flat at 195.05 points.

Meanwhile, the Dow Jones Industrial Average (DJIA :, , ) was fractionally lower, flitting back and forth between negative and positive territory following weaker activity overnight in Asian and European markets. See full story.
On the oil index, only the majors, which last week endured the greatest losses, were managing gains.

Exxon Mobil Corp. (XOM :70.22, +0.21, +0.3% ) , which last week fell 6%, was up 0.1% to $70.05. Chevron Corp. (CVX :66.81, +0.02, +0.0% ) was just over flat at $66.80 and ConocoPhillips (COP :65.22, +0.30, +0.5% ) rose 0.2% to $65.04.

In the news, BP Plc (BP :59.46, -0.63, -1.0% ) said it's agreed to buy Chevron's Netherlands manufacturing company for around $900 million, excluding working capital and hydrocarbon inventory. BP is getting Chevron's 31% stake in the Nerefco refinery, its stake in a jointly owned wind farm located at the refinery and the shareholding of the nearby TEAM crude oil terminal and storage facility.

After the deal, BP will have full control of the 400,000 barrel-a-day Nerefco refinery.

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