eNergy Stocks: Oil stocks cling to early gains

by Jim Jelter
Oil and gas stocks clung to early gains Wednesday, with higher crude oil prices and an early bounce by the Dow helping to break two straight days of losses.

But the gains were modest and less than an hour into the session, most energy stocks had backed off highs hit soon after the open. A choppy performance by the Dow through the early end of the session did not instill much investor confidence, but the broad market was at least holding its own after a brief trip into negative territory.

By mid-morning, the Amex Oil Index ($XOI : 1,139.52, +3.25, +0.3% ) was up 0.4%, the Amex Natural Gas Index ($XNG :449.12, +2.34, +0.5% ) was ahead 0.7%, and the Philadelphia Oil Service Index ($OSX :202.24, +1.37, +0.7% ) was up 7%. While crude oil prices had provided early support, the April crude oil contract turned lower, trading down 3 cents at $57.90 a barrel on the New York Mercantile Exchange. It hit an overnight high of $58.30. See Futures Movers.

The slide followed the Energy Department's weekly report on U.S. fuel supplies, which showed crude oil inventories rose 1.1 million barrels to 325.3 million last week, a bit less than most traders expected.

Distillates supplies -- primarily heating oil and diesel -- fell for a seventh consecutive week, down 2.8 million barrels to 120.4 million, while gasoline stocks fell for a fifth week, down 2.5 million barrels to total 213.9 million barrels, the Energy Department said. MarketWatch