Sector Update: Energy
Energy shares are higher in mid-day trading while crude futures pare yesterday's decline to log gains topping 1%. A rise in equities and positive employment data accounted for much of the gains. Light, sweet crude oil for December delivery traded up 1.22% to $96.89 a barrel.
In energy ETFs, the United States Oil Fund ( USO ) is up 1.35% to $37.50. The United States Natural Gas ETF ( UNG ) is down 0.77% to $8.34. Weekly employment data showed a decline in initial jobless claims to the lowest level in seven months. In mid-day energy news, Teekay Offshore Partners ( TOO ) said today that it will acquire the Sevan Piranema floating production, storage and offloading (FPSO) unit from Sevan Marine ASA for about $165 million. The FPSO unit is currently operating under a long-term charter to Petrobras S.A., including a firm contract period through March 2018, with up to 11 one-year extension options, as well as cost escalation clauses.