Energy stocks are mostly lower this afternoon with the S&P
Energy Index down 0.7% in mid-day trade.
In industry news, oil futures fell after the Norwegian
government moved to avert an lockout of petroleum workers by their
employers early today, sending the two sides into arbitration to
resolve their differences.
West Texas Intermediate crude for August delivery is down nearly
1%, falling 77 cents to $85.22 a barrel in NYMEX trading. Overseas,
August Brent is down $1.55 at $98.77 a barrel in ICE European
The lockout had been set to begin at midnight today in response
to a pay strike by offshore workers over pension terms. Soon after
the announcement, Statoil ASA (
) said it was preparing to resume production at affected
installations "as quickly as possible," adding it expects to return
to full production within a week.
STO last week estimated the job action would take about 1.2
million barrels a day out of production, costing the firm nearly
$87 million daily during its duration. STO ADRs have gained about
Shares of other producers operating on the Norwegian offshore
shelf were mixed, with Anadarko Petroleum (
) losing gains and going negative 1%. Phillips 66 (
) was down less than 1%.
In other sector news,
(+) GEVO, (+1.2% from near year lows) Said it could successfully
ferment isobutanol in commercial quantities, isolate product and
move it into tanks and railcars.
(-) JRCC, (-21.2%) Hardest hit among coal producers following
bankruptcy of Patriot Coal yesterday. BTU, ANR, ACI also trading up
to 4% lower.