By Steve Gelsi
Energy stocks opened higher Thursday, with shares of petroleum
producers and refiners recovering from four straight days of
losses.
The NYSE Arca Oil Index (XOI) rose 1.2% to 867, buoyed by beaten
down shares of Valero (VLO) and Sunoco (SUN), each up more than
2%.
The NYSE Arca Natural Gas Index (XNG) rose 1.5% to 384. The
Philadelphia Oil Service Index (OSX) rose 0.9% to 149.
Among energy stocks in the spotlight, ConocoPhillips (COP) rose
1.4% to $39.99. The U.S. oil major and Abu Dhabi National Oil
Company said they signed a deal to develop the Shah Gas Field in
Abu Dhabi.
ConocoPhillips will hold a 40% stake. The project includes gas
gathering systems, gas processing trains and product pipelines to
process and transport 1 billion cubic feet per day of gas,
associated liquids and sulfur.
The Shah Project will include one of the largest sulfur removal
plants in the world and will also include a sulfur processing and
exporting facility, which will be located in Ruwais Industrial
City, U.A.E.
Also in the spotlight, Murphy Oil (MUR) shares rose 1.2% to
$50.97. The company said its Thunder Hawk field located in the Gulf
of Mexico in 5,700 feet of water has begun production.
"Production from Thunder Hawk will be ramped up during the
second half of the year and should contribute nicely to our
increasing production profile," Murphy Oil said. Partners in the
project include Eni (E) and StatoilHydro (STO).
Meanwhile, U.S. senators began to consider proposed
cap-and-trade legislation to curb carbon dioxide emissions - a move
that affects refiners and power companies.
In an expected move, the Organization of Petroleum Exporting
Countries reduced its five-year forecast for oil-field spending by
about a third in the face of the recession and lower fuel
demand.
-By Steve Gelsi; 415-439-6400; AskNewswires@dowjones.com