MW: Energy stocks weaken on negative jobs surprise
By Steve Gelsi, MarketWatch
NEW YORK (MarketWatch) -- Energy stocks fell out of the gate Thursday, retreating as the broad equities market gave ground on disappointing weekly jobless-claims figures.
The NYSE Arca Oil Index (XOI 1,045, -13.46, -1.27%) fell 1% to 1,049, while the Philadelphia Oil Service Index (OSX 191.62, -2.00, -1.03%) dropped 0.7% to 192 and the NYSE Arca Natural Gas Index (XNG 527.29, -5.47, -1.03%) sank 0.7% to 529.
Crude-oil futures fell 22 cents to stand at $72.44 a barrel. See the latest on trading in energy contracts.
An oil discovery by Devon Energy (DVN 67.34, -0.53, -0.78%) off the coast of Brazil did little to lift the dour mood in the energy sector.
Devon said it struck oil at block BM-C-32 in the Campos Basin, offshore Brazil. Shares of Devon fell 1.2% to $67.03.
The initial exploratory well on the Itaipu prospect was drilled to a total depth of 16,240 feet and encountered approximately 240 feet of oil column, at least 90 feet of net oil pay and no oil/water contact.
Devon operates the well with a 40% interest in the well, located 78 miles southeast of Vitoria City, Espirito Santo State, in 4,400 feet of water.
Anadarko Petroleum Corp. (APC 62.10, -0.86, -1.37%) , which holds 33% working interest, issued an upbeat comment about its prospects in Brazil.
""The positive results of this well and the success of our other pre-salt activities in Brazil's Campos Basin give us a number of reasons to be excited about the area's substantial resource opportunities," Senior Vice President Bob Daniels said.
"The success at Itaipu, coupled with our discovery at Wahoo on the adjacent BM-C-30 block and its successful appraisal at Wahoo #2 five miles to the north, continues to enhance the differentiating value of our portfolio in this expanding world-class petroleum complex," he said in a statement.
Anadarko's shares fell 1.8% to $61.80.
Back on the home front, weekly natural-gas inventories are expected to be reported by the government shortly, as cold temperatures persist across much of the U.S.
And in a bearish sign, the number of initial claims for unemployment benefits in the week ended Dec. 12 increased to 480,000, up 7,000 from the prior week. The consensus forecast of economists had been for claims to fall to 465,000.
