By Steve Gelsi
Energy stocks rose with the broader market in early action
Wednesday as strength in the broad market and higher oil prices
provided a lift ahead of key weekly petroleum supply data from the
Energy Information Administration.
A relatively bright piece of economic data encouraged investors,
with the Consumer Price Index rising 0.7% as expected in June on
higher gas prices.
On the New York Mercantile Exchange, August futures contracts
for crude oil rose $1.18 to $60.70.
The NYSE Arca Oil Index (XOI) jumped 2.2% to 900. The NYSE Arca
Natural Gas Index (XNG) rose 2.6% to 412. The Philadelphia Oil
Service Index (OSX) rose 2.1% to 158.
The Dow Jones Industrial Average was up about 134 points, or
1.6%, at 8,493.
In a cause for optimism in the energy sector, OPEC now sees
world oil consumption will grow by 500,000 barrels a day in 2010
after two years of declines, through demand in China, India, the
Middle East and Latin America.
Among stocks in the spotlight, analysts at Tudor Pickering Holt
on Wednesday upgraded shares of Questar Corp. (STR) to a buy based
on valuation. The gas producer's holdings in the Haynesville Shale
are "going to be bigger and more impactful sooner that Wall Street
realizes," analysts said. Shares rose 3.1% to $31.59.
Also in the natural gas sector, Chesapeake Energy (CHK) rose 4%
to $19.20 after Calyon Securities raised its rating on the company
to buy.
Petro China (PTR) rose 2.4% to $105.51, despite a downgraded by
Morgan Stanley to equal weight from overweight.
-Steve Gelsi; 415-439-6400; AskNewswires@dowjones.com
