MW: Energy stocks losses deepen on supply glut, slack demand
By Steve Gelsi, MarketWatch
NEW YORK (MarketWatch) -- Energy stocks tracked oil futures lower on Wednesday despite gains in the broad market in the wake of higher crude stockpiles.
Crude stockpiles rose 2.1 million barrels in the week ended Nov. 27, the Energy Information Administration reported. Analysts polled by Platts expects a decline of 1.3 million barrels.
Total petroleum demand fell 2.6%, with gasoline demand down 1.6% to 8.94 million barrels a day.
The NYSE Arca Oil Index (XOI 1,082, -7.82, -0.72%) fell 0.6% to 1,082, falling back from a big gain in the previous session.
The NYSE Arca Natural Gas Index (XNG 507.69, -2.89, -0.57%) dropped 0.6% to 508.
The Philadelphia Oil Service Index (OSX 191.37, -2.24, -1.16%) subtracted 1.1% to 192.
After the inventory data, January crude lost 1.3% to $77.36 a barrel. It was down less than 1% before the data. See full story on crude oil futures.
Exxon Mobil Corp. (XOM 75.56, -0.49, -0.64%) dipped 0.5% to $75.68.
Chairman and CEO Rex Tillerson will earn a 2009 bonus of $2.4 million, according to a filing by the oil giant late Tuesday. Last year he received a $4 million bonus.
Tillerson is also eligible to receive 225,000 shares of restricted stock, the same level as last year. Effective Jan. 1, Tillerson's annual salary will increase to $2.2 million from $2.06 million.
Among stocks in the spotlight, Regency Energy (RGNC 18.94, -1.03, -5.13%) fell 5% to $18.94 after it priced an offering of 10.5 million common units at $19.12 each, raising $301 million.
SandRidge Energy (SD 8.86, -0.13, -1.45%) rose 1.8% to $9.15 after it priced 24 million shares at $8.85 a share, raising $212 million. CEO Tom Ward is offering 2 million shares in the deal.
Oil majors are eying a second round of oil lease auctions in Iraq. Exxon Mobil, BP (BP 58.43, -0.15, -0.26%) and Royal Dutch Shell (RDS.A 61.00, -0.03, -0.05%) plan to take part, according to a report by Bloomberg.