By Steve Gelsi, MarketWatch
NEW YORK (MarketWatch) -- Shares of petroleum producers fell while natural gas and oil service shares traded flat-to-lower on the heels of bearish weekly supply data on Wednesday.
Oil supplies rose by one million barrels in the past week, according to the Energy Information Administration. Analysts expected U.S. crude oil stockpiles to fall 1.5 million barrels, according to a survey by Platts.
Crude oil futures dropped 0.4% to close at $74.71.
The Dow Jones Industrial Average fell 22 points. Components DJIA components Exxon Mobil (XOM 61.45, -0.09, -0.15%) and Chevron (CVX 79.25, -0.50, -0.63%) fell 0.2% and 0.6% respectively..
Among the major energy sector gauges, the NYSE Arca Oil Index (XOI 1,001, -8.16, -0.81%) dropped 0.8% to 1,00. The NYSE Arca Natural Gas Index (XNG 512.98, -0.08, -0.02%) fell fractionally to 513. The Philadelphia Oil Service Index (OSX 189.56, -0.77, -0.40%) dipped 0.4% to 190.
Shares of National Fuel Gas Co. (NFG 49.01, +3.15, +6.87%) jumped 7% to $49.01 after the company said a test of resources in the Marcellus shale in Lycoming County, Penn. resulted in a natural gas well flow rate of 15.8 million cubic feet per day in 24 hours, on a 28/64-inch choke.
The company billed the result as “one of the best to date of any well drilled by the industry” in the Marcellus region.
National Fuel Gas said it plans to drill 80 wells in the area over the next three to four years and it hired Jefferies Group (JEF 23.00, -1.25, -5.15%) to assist it in forming a joint venture to accelerate its Marcellus shale development plans.
Nabors Industries (NBR 18.36, +0.21, +1.16%) rose 1.2% to $18.37 for a second straight day of gains after Goldman Sachs upgraded the oil service firm.
FMC Technologies Inc. (FTI 65.43, -0.70, -1.06%) fell 1% to $65.43. The company said it won a $520 million contract to manufacture subsea production equipment for Total SA ‘s (TOT 50.71, -0.34, -0.67%) Angola operations. Deliveries are expected in the first quarter of 2012.
