US Energy Sector Up As Crude Inventories Rise Less Than Expected

By Steve Gelsi

U.S. energy stocks Wednesday perked up from earlier losses on the latest inventory data, with natural gas shares moving furthest into the green as the broad market moved up.

Crude inventories rose 1.7 million barrels in the week ended April 3, according to the latest figures from the Energy Information Administration. Analysts at energy information provider Platts had expected an increase of 2.3 million barrels.

Sector leader Exxon Mobil (XOM) fell 9 cents to $68.62. Chevron (CVX) dipped 42 cents to $67.98. Both oil majors are component of the Dow Jones Industrial Average, which rose 27 points.

Among the major energy indexes, the Amex Oil Index rose 0.2% to 869, the Philadelphia Oil Service Index rose 1.2% to 132, and the Amex Natural Gas Index rose 2.3% to 366.

Crude futures reversed course and rose 28 cents to close at $49.43 a barrel in regular trading on the New York Mercantile Exchange.

Among stocks in the spotlight, Royal Dutch Shell (RDSA), inked a deal with Gazprom that will allow the world's largest natural gas producer to sell sizeable supplies of liquid natural gas in the U.S.

Chevron will be forced to include a shareholder resolution that mentions billions in potential liabilities in an environmental court case it's fighting in Ecuador. The New York City Comptroller's Office has urged Chevron to settle the case, according to reports.

Atwood Oceanics Inc. (ATW) rose 1.5% to $19.25. The Houston-based drilling contractor said a rumor of a pending acquisition of the firm appears to be "unfounded." The company said it is unaware of any corporate activities that would account for unusual market activity in its common stock.

Spectra Energy Partners LP (SEP) entered into a definitive agreement with Atlas Pipeline Partners LP (APL) to acquire all of the ownership interests of a 565-mile natural-gas transmission line for $300 million in cash. Shares of Spectra rose 2.4% to $22.10.

-Steve Gelsi; 415-439-6400; [e-mail]

Order free Annual Report for Royal Dutch Shell

Visit http://djnweurope.ar.wilink.com/?ticker=GB00B03MLX29 or call [phone]

Order free Annual Report for Exxon Mobil Corporation

Visit http://djnweurope.ar.wilink.com/?ticker=US30231G1022 or call [phone]