NEW YORK (Thomson Financial) - Energy stocks fell Wednesday as crude oil
prices slipped on data that showed inventories rose unexpectedly during the
latest week.
The Department of Energy earlier said U.S. crude oil stocks rose by 800,000
barrels last week, more than the 200,000 barrels gain analyst had expected. The
rise follows five straight weeks of declining crude stockpiles in the world's
largest energy consumer.
The news sent August crude oil futures down $4.00, or 3%, to $132.98.
Shares of Exxon Mobil, a Dow component, fell 1% to $86.08 after the
inventories data, as investors shrugged off news of a court ruling that lowered
the penalty the oil giant has to pay for its role in a 1989 maritime oil spill.
According to reports, the U.S. Supreme Court reduced a $2.5 billion punitive
damages award against Exxon for its role in the oil spill in Valdez, Alaska --
the worst spill in history -- to $507.5 million.
In morning trading Wednesday, the Energy Select Sector SPDR (XLE) fell by as
much as 3% to $85.07, off 7% from the year high of $91.42 reached on May 21.
Among the ETF's components, Chevron Corp. fell 1% to $97.57, while
ConocoPhillips slipped 1.3% to $93.46.
Michelle Rama
mr/vj
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