By Jim Jelter, MarketWatch
SAN FRANCISCO (MarketWatch) — The oil field service sector led energy stocks narrowly higher Monday, with General Electric Co.’s $1.3 billion acquisition of British equipment maker Wellstream Holdings PLC stirring speculation other deals might be in the works.
The Philadelphia Oil Service Sector Index (OSX 239.70, +2.99, +1.26%) gained 1.3% to 239.7 points, with shares of Halliburton (HAL 41.15, +0.93, +2.31%) topping gainers in the group on a 2.3% advance to $41.15. Halliburton also benefited from reports that Nigeria is considering dropping a bribery case it was preparing to level against the company.
Global Industries Ltd. (GLBL 7.05, +0.15, +2.17%) , National Oilwell Varco Inc. (NOV 63.99, +1.33, +2.12%) and Baker Hughes Inc. (BHI 55.05, +1.13, +2.10%) also posted 2% gains for the day.
Gains among oil field equipment makers echoed GE’s (GE 17.62, -0.10, -0.56%) Wellstream (UK:WSM 790.00, 0.00, 0.00%) purchase, a move the company said aimed to boost its presence in the oil-and-gas sector. Read about GE's Wellstream purchase.
Meanwhile, January crude-oil futures rose 82 cents a barrel to $88.61 on the New York Mercantile Exchange – a relief rally following China’s decision to leave interest rates unchanged. Energy traders had been fearing a rate hike would hurt China’s appetite for energy. Read about China and crude-oil prices.
Rising oil prices in turn provided support for oil stocks, with the NYSE Arca Oil Index (XOI 1,173, +7.60, +0.65%) gaining 0.7% to 1,173 points. Shares of Total S.A. led percentage gainers in the group, up 1.9% at $53.19.
The NYSE Arca Natural Gas Index (XNG 589.82, +2.91, +0.50%) rose 0.5% to 589.8 points.
