MW: Energy stocks head deeper south as crude falls below $69
By Jim Jelter, MarketWatch
SAN FRANCISCO (MarketWatch) -- Energy producers, refiners and service companies all saw their shares moving into a deeper into the loss column Friday, pinched by downturns in both the broader equities market and crude-oil prices tumbled below $69 a barrel.
The sell-off snapped two days of gains in the sector, with the oil field service companies getting hit hardest.
The Philadelphia Oil Service Sector Index (OSX 171.76, -4.56, -2.59%) was off 2.9% at 171 points as investors locked in gains over the past two sessions, carrying the index back toward where it started the week.
National Oilwell Varco (NOV 36.87, -1.42, -3.71%) was leading percentage decliners in the group with a 4.5% tumble to $36.55 a share. Shares of Cameron International (CAM 34.09, -1.05, -2.99%) , Global Industries (GLBL 8.51, -0.42, -4.70%) and Smith International (SII 26.77, -0.74, -2.69%) were also all down at least 3%.
The NYSE Arca Oil Index (XOI 947.93, -13.92, -1.45%) was also painted red, down 1.7% at 945 points with all 13 components trading lower. Refiners and independents were taking the brunt of the selling. Shares of Hess Corp. (HES 51.00, -1.42, -2.71%) , Marathon Oil (MRO 30.96, -0.57, -1.81%) and Valero Energy (VLO 17.76, -0.45, -2.47%) were all down at least 2%.
Heavyweight Exxon Mobil (XOM 67.87, -0.88, -1.28%) was off 1.3% at 67.85 while Chevron Corp. (CVX 67.97, -0.56, -0.82%) was down 1.2% at $67.66.
Weaker crude-oil prices were a key part of the equation, with the September futures contract accelerating its overnight decline. At last glance, the contract was down $1.92 at $68.60 a barrel, surrendering the psychologically significant $70 mark. See Futures Movers.
Trade was choppy and volumes light, however, making it hard to discern any conviction behind the move beyond a bout of profit-taking.
But the equities market overall, which for most of the year has played just as important a role as energy prices in setting the tone for the sector, was also in a bearish mood Friday, with the Dow Jones Industrial Average (INDU 9,263, -134.83, -1.44%) backing down 121 points to 9,277 and the S&P 500 Index (SPX 998.18, -14.55, -1.44%) off 14 points, or 1.4%, at 998.
The NYSE Arca Natural Gas Index (XNG 457.76, -9.96, -2.13%) was not immune to the overall trend, down 2% at 457.6 points, despite natural gas futures holding their own.
The sell-off was setting up weekly declines of about 1% for both the oil and gas indexes.
