by Shawn Langlois
Oil and gas stocks followed the broader market lower Thursday as crude-oil futures staged a comeback from the prior session's decline.
Energy stocks dip as crude rebounds
Crude oil for June delivery rose 62 cents, or 1%, at $62.17 early as traders weighed ongoing violence in oil-rich Nigeria and an increase in U.S. gasoline supplies.
The Amex Oil and Gas Index (XOI :1,274.63, -23.65, -1.8% ) shed 1.6% to 1,278 points, with every stock in the sector tracker down at least 1%. BP Plc (BP :66.36, -1.26, -1.9% ) and Hess Corp. (HES :57.16, -1.28, -2.2% ) were the hardest hit, down about 2% each.
Goldman Sachs The Goldman Sachs Group, Inc (GS :224.89, -1.68, -0.7% ) said John Browne, who stepped down as CEO of BP last week, has resigned from the company's board where he had served since 1999.
The Philadelphia Oil Service Sector Index ($OSX :236.19, -3.54, -1.5% ) fell 1.7% to 236 points. The Amex Natural Gas Index (XNG :489.96, -6.83, -1.4% ) lost 1.1% to 491 points.
Gasoline futures rallied to their strongest level since mid-August as traders focused on data showing that U.S. reformulated gasoline supplies stand at 52% below the year-ago level. See full story.
Williams Cos. (WMB :28.34, -0.76, -2.6% ) led a sweeping pullback in the benchmark index, down 2.9% at $28.28. El Paso Corp. (EP :15.19, -0.10, -0.7% ) set a positive course early but turned south, off 10 cents at $15.19, as rampant selling across the market weighed.
Calyon Securities analyst Gordon Howald reiterated his buy rating on the stock and raised his price target to $17 a share from $16.50. He told clients to buy on any weakness ahead of several catalysts he sees lifting the stock over the next two years.
