ConocoPhillips, National Oilwell Varco dip; Baker Hughes, Hess rise
By Steve Gelsi, MarketWatch
NEW YORK (MarketWatch) — Oil-service shares weighed on energy stocks Wednesday, as investors sifted through an increase in petroleum supplies, a drop in ConocoPhillips’ stock price and an upcoming monetary policy update from the U.S. Federal Reserve.
Casting a cloud over the sector, crude-oil futures fell to $111 a barrel on an increase of 6.2 million barrels in petroleum supplies in the past week, according to the Energy Information Administration. That figure exceeded the analyst forecast of 1.6 million barrels. Gasoline supplies dropped 1.8 million barrels, greater than the expectation of 1.5 million barrels. See Futures Movers for more on oil prices.
Besides ConocoPhillips COP -3.05% , profit updates from Hess Corp. HES +3.98% , Baker Hughes BHI +2.61% and National Oilwell Varco NOV -5.16% shaped trading in energy stocks.
The NYSE Arca Oil Index XOI -0.42% fell 0.5% to 1,364. The NYSE Arca Natural Gas Index XNG -0.76% fell 0.8% to 680.
The Philadelphia Oil Service Index OSX -1.77% dropped 1.8% to 284.
Collectively, energy stock components of the S&P 500 Index SPX -0.11% dropped 1.6%, among the worst-performing subsectors among 10 tracked by FactSet Research.
Shares of National Oilwell Varco weighed on energy stocks, with a drop of 4.8%. Nabors Industries NBR -3.31% fell 3.7% and Rowan Cos. RDC -2.59% dropped 2.7%.
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ConocoPhillips fell 2.8% after it reported a big jump in earnings on higher oil prices, but said its production fell short of expectations. See ConocoPhillips earnings story.
BP PLC BP -0.09% edged down 0.2% after its profit climbed 17%, but the oil major said its production fell 11% after it sold assets to help pay for the Gulf of Mexico oil spill. See BP earnings story.
Also on the downside, National Oilwell Varco fell 4% after its earnings of $1 a share matched Wall Street estimates. Analysts at Tudor Pickering Holt said the company’s rig technology revenue and margins were lower than expected.
On the upside, Hess jumped 4% after it said its profit jumped 73%, but the oil company said its production fell to 399,000 barrels of oil equivalent per day, from 423,000 barrels of oil equivalent per day in the first quarter a year ago.
Hess said the downward move reflected the suspension of production in Libya in early March due to civil unrest and the sale of certain natural-gas producing assets in the United Kingdom North Sea.
Baker Hughes rose 3% after the company said its first-quarter earnings of 87 cents a share beat the Wall Street estimate of 78 cents a share.
