By Steve Gelsi, MarketWatch
NEW YORK (MarketWatch) - Energy stocks moved lower Monday as oil futures dropped below $70 a barrel before recovering slightly, while shares of companies involved in the BP oil spill resisted the market downdraft on some progress made in containing the accident.
Crude futures dropped 72 cents to $70.89 in recent action, setting a somber tone for energy stocks.
The NYSE Arca Oil Index (XOI 999.16, -8.61, -0.85%) fell 0.9% to 999, its first trip below 1,000 since February outside of the big, brief trading drop two week ago.
The NYSE Arca Natural Gas Index (XNG 529.35, -4.11, -0.77%) fell 0.2% to 532. The Philadelphia Oil Service Index (OSX 192.28, -1.05, -0.54%) dipped 0.4% to 193.
BP (BP 46.64, -0.23, -0.49%) fell 0.7% to $46.5. The oil major said it's drawing about 1,000 barrels of oil a day from the 5,000 barrel-a-day leak in the Gulf of Mexico through a mile-long pipe lowered to the sea floor. See full story.
Anadarko Petroleum (APC 57.28, -0.04, -0.07%) , which owns a 25% stake in the stricken well, rose 2 cents to $57.34. Cameron International (CAM 37.25, -0.05, -0.13%) , which manufactured the blow-out preventer at the top of the well, rose 0.8% to $37.59. Transocean (RIG 66.16, -0.17, -0.25%) , the owner of the semi-submersible Deepwater Horizon rig that went down in the Gulf, rose 0.2% to $66.45.
J.P. Morgan on Monday said they expected a lift in Anadarko shares.
"We think the weekend news is good enough to help APC stock outperform over the next few days," J.P. Morgan analysts said.
J.P. Morgan reiterated its outperform rating on the stock.
Meanwhile, crude-oil prices hovered below $72 a barrel after falling to more than three-month lows in Asian trade amid worries over a potential decline in energy demand. Crude for June delivery traded as low as $69.82 in electronic trading.
