By Steve Gelsi, MarketWatch
NEW YORK (MarketWatch) -- Energy stocks rose Tuesday, as oil prices broke through the $82-a-barrel mark, Royal Dutch Shell issued a bullish production outlook and investors kept a close eye out for what the Federal Reserve's latest comments on interest rates might say.
The NYSE Arca Oil Index (XOI 1,075, +8.85, +0.83%) rose 0.9% to 1,076.
The NYSE Arca Natural Gas Index (XNG 549.66, +1.62, +0.30%) advanced 0.4% to 550.
The Philadelphia Oil Service Index (OSX 213.03, +2.82, +1.34%) jumped 1.4% to 213.
In energy futures, the crude-oil contract rose $1.95 to $82.03 a barrel, recovering from losses in the previous session.
Among stocks in the spotlight, Royal Dutch Shell (RDS.A 58.97, +1.04, +1.79%) rose 1.9% to $59.01.
The oil major said it's expecting upstream production to reach 3.5 million barrels of oil equivalent a day in 2012, which would be 11% higher than 2009 production levels.
The company's assessing over 35 new projects from some 8 billion barrels of oil equivalent resources, management said.
Shell expects cash flow from operations will increase by about 50% from 2009 to 2012, assuming oil prices in the $60 range, and by more than 80%, assuming $80-a-barrel oil. It expects asset sales between $1 billion and $3 billion each year.
