The NYSE Arca Oil Index (XOI 1,030, -7.11, -0.69%) dipped 0.2% to 1,036. The NYSE Arca Natural Gas Index (XNG 497.80, -1.41, -0.28%) edged up fractionally to 500. The Philadelphia Oil Service Index (OSX 191.94, -0.66, -0.34%) rose 0.2% to 193. Among energy stocks in the spotlight, ConocoPhillips (COP 45.62, -0.07, -0.15%) rose 0.4% to $45.88 after the oil major drew an upgrade to buy from hold at Collins Stewart. CNOOC (CEO 137.09, +1.10, +0.81%) shares rose 1.5% to $137.98. The Financial Times reported that the Chinese oil major is in talks to purchase six billion barrels of oil from Nigeria. The report said 16 licenses are up for renewal, with Royal Dutch Shell, Chevron, Total and Exxon Mobil in talks. Shares of ocean drilling specialist Transocean (RIG 85.15, +0.82, +0.97%) rose 1.1% to $85.29. The company said it won a three-year, $544 million contract from BP (BP 53.46, -0.10, -0.19%) for its Deepwater Horizon drill ship in the U.S. Gulf of Mexico. The contract begins in 2010. In the futures market, crude oil fell 10 cents to $66.74. The broad market posted modest gains on a rise in housing prices in July.

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