Oil and gas stocks moved slightly lower early Thursday as a slight overnight uptick in crude-oil prices failed to ignite reciprocal action in corresponding equities.
The Amex Oil Index was off 1.2% at 860.36 points in early action, with refiner Sunoco Inc leading percentage decliners in the group on a 2.2% slide to $27.16 a share.
Sunoco agreed to sell its Tulsa, Okla., refinery to a unit of Holly Corp. for $65 million. Holly will make a separate payment to cover the market cost of inventory at the facility when the deal closes, which both parties hope takes place by June.
Holly Corp. shares were up 7 cents a share at $21.17.
After rising briefly above the $50 level, the light sweet crude-oil contract for May delivery was again in retreat, last down 6 cents at $49.19 a barrel on the New York Mercantile Exchange. Crude's 2% overnight rally fizzled when confronted by another crop of weak economic reports from key industrial nations around the world. See Futures Movers.
The Amex Natural Gas Index was hovering around 375 points, flat to slightly lower than Wednesday's close, with eight of the index's components trading higher and seven moving lower. Southwestern Energy was leading gainers, up nearly 3% at $31.49 a share and one of the only stocks in the group moving more than 1%.
The Philadelphia Oil Service Index was down 0.8% at 140.8 points, quickly abandoning gains made at the open.
There were a couple of downgrades in the sector on an otherwise quiet stock ratings front. Both were from Jesup & Lamont aimed at drillers Diamond Offshore Drilling and Pride International , which were lowered to hold from buy.
