Oil stocks traded mixed Wednesday as Wall Street weighed bullishness on major oil conglomerates but cast a worried eye on some shares from the oil services sector.
A pullback in crude-oil and gasoline prices and a raft of broker downgrades that hit several big names in the oil services group weighed on parts of the sector.
The Amex Oil Index (XOI :1,475.10, +5.60, +0.4% ) rose fractionally to 1,470. The Amex Natural Gas Index fell less than 0.1% to 510.79.
Oil services shares fall into the red
The Philadelphia Oil Service Index ($OSX :270.54, -1.32, -0.5% ) gave up 0.7% after Merrill Lynch and Capital One trimmed earnings outlooks for much of the group in the wake of foul weather in the Gulf of Mexico region. GlobalSantaFe (GSF : 72.78, -1.05, -1.4% ) was leading decliners, down 2.4%, with the rest of the group showing losses of at least 1%.
Capital One said the company lost a riser for its GSF Rig 135 when the transport vessel it was on capsized. The company is weighing its insurance coverage for damages arising from the event.
ConocoPhillips (COP : 85.45, +1.33, +1.6% ) posted yet another gain, rising 1.5% to $85.34 on the heels of its big stock buyback plan announced Monday. Chevron Corp. (CVX : 89.98, +0.98, +1.1% ) advanced 1% to $89.81 after the oil giant disclosed benefits from higher oil prices in its second quarter . See full story. Meanwhile, crude for August delivery was off 44 cents at $72.37 a barrel.
A pullback in crude-oil and gasoline prices and a raft of broker downgrades that hit several big names in the oil services group weighed on parts of the sector.
The Amex Oil Index (XOI :1,475.10, +5.60, +0.4% ) rose fractionally to 1,470. The Amex Natural Gas Index fell less than 0.1% to 510.79.
Oil services shares fall into the red
The Philadelphia Oil Service Index ($OSX :270.54, -1.32, -0.5% ) gave up 0.7% after Merrill Lynch and Capital One trimmed earnings outlooks for much of the group in the wake of foul weather in the Gulf of Mexico region. GlobalSantaFe (GSF : 72.78, -1.05, -1.4% ) was leading decliners, down 2.4%, with the rest of the group showing losses of at least 1%.
Capital One said the company lost a riser for its GSF Rig 135 when the transport vessel it was on capsized. The company is weighing its insurance coverage for damages arising from the event.
Meanwhile, Bear Stearns raised its second-quarter earnings estimates for the major oils by an average of 12% to reflect higher refining and marketing margins. Bear Stearns and Lehman Brothers both raised price targets for Exxon Mobil (XOM : 86.82, +0.32, +0.4% ) . Exxon Mobil shares rose 24 cents to $86.75.
ConocoPhillips (COP : 85.45, +1.33, +1.6% ) posted yet another gain, rising 1.5% to $85.34 on the heels of its big stock buyback plan announced Monday. Chevron Corp. (CVX : 89.98, +0.98, +1.1% ) advanced 1% to $89.81 after the oil giant disclosed benefits from higher oil prices in its second quarter . See full story. Meanwhile, crude for August delivery was off 44 cents at $72.37 a barrel.
