Bearish economic indicators weighed on energy stocks on Thursday, as gains in the previous session gave way to selling on grim employment data ahead of the big monthly jobs report due out Friday.
The Amex Oil Index fell 1% to 937 in early morning action. The Amex Natural Gas Index dipped 0.4% to 385, while the Philadelphia Oil Service Index ) fell 0.8% to 128.
In the broad market, worse-than-expected weekly jobless claims, which surged to their highest level since 1982, pulled stocks down. See full story on jobless claims report.
Chevron Corp. said Thursday it has made a "very significant" oil discovery in its Buckskin project in a well drilled to a depth of 29,404 feet in the deep waters of the Gulf of Mexico. Its shares were down less than 1% at $71.08 in early trading.
Repsol owns a 12.5% working interest in the prospect, while Chevron owns 55% and will become operator for the site and conduct all future work. Other Buckskin co-owners are Maersk Oil America, with 20%, and Samson Offshore Co., with a 12.5% working interest.
Diamond Offshore Drilling Inc. shares fell 3% to $62.25. The company said fourth-quarter net income rose to $293.5 million, or $2.11 a share, from $164.9 million, or $1.19 a share, in the year-ago period. The company fell short of the average estimate of $2.36 a share from a survey by FactSet Research.
Revenue increased to $903.2 million from $666.7 million. The latest period included one-time costs of $51 million for foreign currency losses and $32 million related to a North Sea semi-submersible rig contract.
