Jitters over uncertainty about higher rates in China, Ireland debt
By Steve Gelsi, MarketWatch
NEW YORK (MarketWatch) — Shares of petroleum producers fell back Friday from two-year highs as equities and commodities markets in the U.S. reacted to a steep selloff in China’s stock market overnight.
The Dow Jones Industrial Average (DJIA 11,193, -90.52, -0.80%) dropped 91 points, on jitters tied to the prospects of higher interest rates in China and woes over sovereign debt held by Ireland and other European countries.
Shares of Exxon Mobil (XOM 70.99, -0.84, -1.17%) and Chevron Corp. (CVX 85.26, -0.18, -0.21%) , the Dow industrials’ energy components, dropped by 1.2% and 0.8%, respectively.
The NYSE Arca Oil Index (XOI 1,129, -12.97, -1.14%) dropped 1.1% to 1,129, falling back from a two-year high in the previous session.
The NYSE Arca Natural Gas Index (XNG 571.30, -9.43, -1.62%) sank 1.6% to 571.
The Philadelphia Oil Service Index (OSX 222.13, -6.20, -2.72%) lost 2.7% to 222.
Among movers, Denbury Resources (DNR 19.04, -0.03, -0.14%) fell 3.6% and Anadarko Petroleum (APC 63.95, -0.03, -0.04%) dropped 1.9%.
In energy futures, crude-oil prices dropped 1.6% to $86.46 a barrel. See more about the pullback in crude futures tied to jitters over higher prospective interest rates in China.
With their big losses on Friday, some energy stocks moved into the red for the week.
The NYSE Arca Oil Index closed at 1,129 on Friday, below its week-ago close of 1,133. On Thursday, the gauge of petroleum producers and refiners touched a two-year high of 1,142.
The NYSE Arca Natural Gas Index ended at 571 on Friday, holding onto gains from its week-ago close of 567.
The Philadelphia Oil Service Index traded at 222 on Friday, down slightly from its level of 223 a week ago.
