NEW YORK (Thomson Financial) - The oil-service sector bounced back from
losses in the previous session Friday, buoyed by sharply higher crude prices
after a media report suggested that an Israeli military exercise earlier this
month may have been aimed at Iranian nuclear facilities.
The Oil Services Holdrs ETF (OIH) rallied 1.5% to $218.17, recovering from a
1.4% drop on Thursday. The ETF has climbed about 15% since the beginning of the
year.
The Energy Select Sector SPDR (XLE) also rose 1.2% to $87.32.
Crude for July delivery jumped $3.72, or 2.8%, to $135.65 a barrel on the
New York Mercantile Exchange, after hitting a high of $136.08. The more-active
August contract rose $3.85, or 2.9%, to $136.45.
Oil prices fell sharply Thursday after Saudi Arabia announced a production
hike and China raised energy prices across the board.
The New York Times reported Friday that Israel carried out an airborne
military exercise earlier this month that "American officials say appeared to be
a rehearsal" for a potential bombing attack on Iran's nuclear facilities.
Among the ETF's most heavily-weighted components, shares of Baker Hughes
Inc. rose 1.7% to $87.74, while Transocean Inc. added 2.1% to $151.15, and
Schlumberger Ltd. tacked on 1% to $105.89.
BJ Services Co. rose 2.3% to $32.87 and Rowan Cos. Inc. gained 2.8% to
$45.78.
Diamond Offshore Drilling traded up 2.4% at $133.77. Nabors Industries Ltd.
was up 1.6% at $47.39.
Wanfeng Zhou
wz/vj
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