Oil service index hits 14-month high
By Myra P. Saefong, CBS MarketWatch
Last Update: 1:45 PM ET Sep 9, 1999 Movers & Shakers
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NEW YORK (CBS.MW) -- The oil service stocks index soared to a 14-month high Thursday as the latest drop in crude supplies demonstrated the continued success of the Organization of Petroleum Exporting Countries' efforts to reduce worldwide inventories.
The Philadelphia Oil Service Index ($OSX: news, msgs) jumped 4 percent to 90.02 -- it's highest point since mid-1998. The gains were led by Smith International Inc. (SII: news, msgs), up 2 3/8, or 5 percent to 50 1/16; Rowan Companies (RDC: news, msgs), which rose 15/16 to 19 5/8 and Weatherford International (WFT: news, msgs), up 1 11/16 to 37 5/8.
"The oil service index is starting to kick into high gear," said Phil Flynn, senior market analyst and vice president of Alaron.com. "It's a celebration of higher oil prices as the rally in crude begins to trickle down into all sectors of the industry."
Late Wednesday, the American Petroleum Institute said supplies of crude fell 5.97 million barrels -- twice as much as the market expected. Total supplies now amount to 311.7 million barrels as of the week ended Sept. 3.
The Philadelphia Oil Service Index
Distillate inventories, according to the API, also slipped 224,000 barrels, defying market expectations for a climb in supplies.
Meanwhile, the Department of Energy reported a 2 million barrel drop in gasoline supplies, offsetting the API's reported 628,000 barrel rise.
On the New York Mercantile Exchange, October crude jumped 48 cents to $23.14 a barrel, its highest level in nearly two years. See Futures Movers.
More gains in the oil services were noted in shares of Halliburton (HAL: news, msgs), which jumped 2 1/8 to 50, R & B Falcon Corp.'s (FLC: news, msgs) 9/16 point gain to 14 9/16, and Transocean Offshore Inc. (RIG: news, msgs) which rose 1 1/4 to 34 5/8.
Myra Picache Saefong is a reporter at CBS MarketWatch.
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