Top Energy Stocks
Energy stocks were mostly lower, with the NYSE Energy Sector Index falling 0.5% while shares of energy companies in the S&P 500 were down 0.4% as a group. West Texas Intermediate crude oil for October delivery was slipping $1.66 to $55.74 per barrel at the New York Mercantile Exchange while the global benchmark Brent crude November contract was declining $1.77 to $60.61 per barrel. October natural gas futures were 2 cents lower at $2.56 per 1 million BTU. Among energy-related ETFs, the United States Oil fund was falling 3% while the United States Natural Gas fund was dropping 1%. The Philadelphia Oil Service Sector index was down about 0.2%.
In industry news:
US crude oil supplies dropped by 6.9 million barrels during the seven days ended Sept 6 compared with the prior week, the US Energy Information Administration reported Wednesday, almost doubling the 3.6 million-barrel draw industry experts polled by S&P Global Platts had been expecting. The American Petroleum Institute, which issues a similar inventory report each week, late Tuesday said crude oil stocks declined by 7.2 million barrels last week, according to reports.
Among energy stocks moving on news:
(-) Tops Ships (TOPS) tumbled 49% to an all-time low of $4.25 a share on Wednesday after the petroleum tanker company priced a $10 million public offering of 1.58 million common shares at $6.30 apiece, or 24% below Tuesday's closing price. Investors also received a warrant to buy an additional share before Dec. 31 for $8.29 for each share they bought in the original offering.
In other sector news:
(+) Gevo (GEVO) climbed 4.5% on Wednesday after the bio-fuels company announced a joint development agreement with Queensland, Australia-based Leaf Resources to explore converting cellulose sugars and glycerol into hydrocarbon molecules that are used to produce specific fuels and chemicals. Both companies will be responsible for their own costs during the initial phase with funding for future stages to be determined later.
(-) Parker Drilling (PKD) dropped 5.6% after the contract driller announced plans to delist its common shares from the New York Stock Exchange following a 100-for-1 reverse stock split that will reduce the number of investors owning at least 100 shares to under 300. Shareholders owning fewer than 10,000 pre-split shares will receive $30 for each of those shares, the company said.
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