Market Overview

U.S. Takes Initial Step To Lift Oil Export Ban; Refiner Stocks Sink

Share:
Related PXD
Is David Einhorn Right About Pioneer Natural Resources?
Ira Sohn Conference Live Blog: Movers, Shakers, Hedgie Comments
Wall Street Breakfast: Eurozone Growth Forecast Gets Big Boost (Seeking Alpha)
Related EPD
Top 4 NYSE Stocks In The Independent Oil & Gas Industry With The Highest Revenue
Oppenheimer: The Party In Energy Is Over For Now
Preliminary Review Of Enterprise Products Partners' Q1 2015 Results (Seeking Alpha)

Oil drilling stocks were up a bit and refiners were down sharply on news that U.S. regulators approved the export of oil by two Texas companies.

Citi Research's John Nelson called the move by the Commerce Department "an initial step toward exporting," the growing production of U.S. crude oil.

Companies approved so far for exporting are Pioneer Natural Resources (NYSE: PXD) and Enterprise Products Partners (NYSE: EPD).

Permitting the exports would lift a ban in place since the Arab oil embargo of the 1970s and might lift prices for U.S. producers coping with a glut from the shale boom.

Nelson said he's "encouraged" by an increasingly accommodating stance of the Obama Administration" with regard to producers he covers.

Although shares of refiners were off on the news, Citi's Eric G. Lee said separately that the action will have "no meaningful impact" on refiners' profits.

Yet among refinery stocks, PBF Energy Inc. (NYSE: PBF) dropped more than 10 percent to $23.23; Valero Energy Corp fell nearly 10 percent to $50.60 and Holly Frontier Corp. (NYSE: HFC) was off more than eight percent to $44.93.

Delek US Holdings Inc. (NYSE: DK) fell nearly eight percent to $29.50; Western Refining, Inc. (NYSE: WNR) declined seven percent to $37.76; lon USA Energy Inc. (NYSE: ALJ) was down seven percent to $12.36 and Marathon Petroleum Corp. (NYSE: MPC) was up more than seven percent to $80.09.

Among producers the swing was less dramatic. Pioneer Natural Resources (NYSE: PXD) which received the condensate export approval gained 4.4 percent to $231.47.

Others in the refinery group include Concho Resources Inc. (NYSE: CXO) up 2.22 percent to $139.42; EOG Resources Inc. (NYSE: EOG) up two percent to $115.35 and Whiting Petroleum Corp. (NYSE: WLL) up 1.7 percent to $79.06.

Latest Ratings for PXD

DateFirmActionFromTo
Apr 2015Cowen & CompanyInitiates Coverage onOutperform
Apr 2015JefferiesMaintainsBuy
Apr 2015NomuraInitiates Coverage onBuy

View More Analyst Ratings for PXD
View the Latest Analyst Ratings

Posted-In: Citigroup Eric G. LeeAnalyst Color News Commodities Events Markets Analyst Ratings

 

Related Articles (ALJ + CXO)

Around the Web, We're Loving...