NEW YORK (MarketWatch) -- Energy stocks traded flat-to-higher Wednesday despite a surprise rise in crude oil inventories, as supply levels at the pipeline crossroads of Cushing, Oklahoma touched a new record.
The NYSE Arca Oil Index (XOI 1,112, +4.75, +0.43%) rose fractionally to 1,107.
The NYSE Arca Natural Gas Index (XNG 564.74, +0.85, +0.15%) dipped 0.1% to 563.
The Philadelphia Oil Service Index (OSX 209.00, +2.35, +1.14%) rose 0.7% to 208.
Weekly oil data from the U.S. Energy Information Administration showed an increase of 1.3 million barrels, verses an expected draw down of 1.6-million-barrels in an analyst survey by Platts.
The level at Cushing, where crude oil deliveries take place for petroleum futures contracts, set a new record of 35.7 million barrels.
Oil futures fell 63 cents to $81.14. See more on crude oil futures and energy inventories.
Among stocks in the spotlight, Exxon Mobil (XOM 69.83, +0.41, +0.59%) rose 25 cents to $69.67.
The oil giant said it signed a deal to develop a multi-billion dollar petrochemical complex with state-run Qatar Petroleum in order to sell products to Asian markets.
Patriot Coal (PCX 18.64, +0.35, +1.91%) rose 1.5% to $18.56, on top of a nearly 6% rise in the previous session.
The St. Louis company won a permit from the U.S. Army Corp of Engineers for its massive Hobet 45 mine under Section 404 of the Clean Water Act. The Hobet surface mine is part of the coal firm's Corridor G mining complex in southern West Virginia. "We are pleased that we can now begin work in the permitted area," the company said.
On Tuesday, Patriot Coal said it won an approval from the Environmental Protection Agency to expand its Hobet 45 mountain top mine after it reached an agreement with the agency on a plan to minimize its impact to the environment.
Energy Transfer Partners LP (ETP 45.22, -0.88, -1.91%) fell 2.7% to $44.89. The company priced 7.5 million common units at $44.72 in a bid to raise about $346 million. The Dallas based owner of pipelines in Texas and other states plans to used proceeds of the deal to repay debt, fund capital expenditures related to pipeline construction projects and for general partnership purposes.
Valero Energy Corp. (VLO 18.85, +0.50, +2.73%) has confirmed that it's in talks to sell its 235,000 barrel-a-day refinery in the Caribbean nation of Aruba, according to reports late Tuesday. Recently-elected Aruba Prime Minister Mike Eman said through a spokesman that Valero is in talks with PetroChina (PTR 129.71, +2.53, +1.99%) , but the refining giant declined to identify the prospective buyer. The facility, which accounts for about a third of Aruba's gross domestic product, has been on the sales block for more than a year.
Separately, Canada's Industry Minister OK'd PetroChina's planed C$1.9 billion spending plan for Alberta oilsands properties. PetroChina had announced plans to buy a 60% stake in Athabasca Oil Sands Corp.'s MacKay River and Dover projects.
Shares of Valero rose 1.3% to $18.58. PetroChina rose 2% to $129.69.
