NEW YORK (Thomson Financial) - The oil services sector was broadly lower,
but bounced off the worst levels, after data showing a surprise drop in crude
inventories prompted a sharp rebound in crude oil prices.
The Oil Services Holders ETF (OIH) fell 1.4% to $212.45, with 15 of 16
components trading lower. Ahead of the inventory data, the sector tracking stock
was down as much as 2.6% at an intraday low of $210.
Among the OIH's more heavily-weighted components, Transocean Inc. fell 2.1%
to $154.39, Halliburton Co. slipped 0.5% to $48.55, Schlumberger Ltd. lost 0.5%
to $102.35 and Baker Hughes Inc. eased 0.5% to $88.86.
Weatherford International was the lone OIH gainer, adding 2.3% to $45.66,
just off an all-time high of $45.97 hit earlier in the session.
July crude oil futures were last up 14 cents at $131.18 a barrel, and
reached a high of $133.12 a barrel in intraday trading. Before the release of
inventory data, crude was down as much as $2.53 at a low of $128.50 a barrel.
Earlier, the Energy Information Administration said crude oil inventories
fell by 8.8 million barrels in the latest week, the biggest drop since September
2004. Analysts were looking for an unchanged reading, according to IFR Markets.
Tomi Kilgore
tk1
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