By Steve Gelsi
Royal Dutch Shell CEO Jeroen van der Veer on Monday reiterated
the industry's recent warning about a possible spike in oil prices
down the road, but it had little effect on falling oil prices and
weaker energy stocks on Monday.
The Amex Oil Index (XOI) fell 1.6% to 965. The Amex Natural Gas
Index (XNG) fell 1.4% to 439. The Philadelphia Oil Service Index
(OSX) dropped 2.6% to 175.
Movers in the sector included Hess Corp. (HES), down 3.5% to
$57.10, and Chesapeake Corp. (CHK), down 3.2% to $22.52. Shares of
Weatherford (WFT) fell 3.5% to $19.90.
Oil futures fell 85 cents to $67.59 on a stronger dollar and
weaker equity markets. Nobuo Tanaka, the executive director of the
International Energy Agency, said fundamentals don't support the
recent run-up in oil prices.
Van der Veer warned a lack of investment could leave the energy
sector underprepared for a surge in demand tied a 50% increase in
world population by 2050.
"We think it is a good philosophy to be a high investor (now)
and benefit from the lower construction prices," he said in a
report by the Associated Press.
His comments came after energy pundits reacted to cutbacks in
capital spending as a result of lower oil prices and the financial
crisis in recent months.
Sempra Energy (SRE) was flat at $46.65 after its Sempra LNG unit
inked a deal handle liquefied natural gas from Ras Laffan Liquefied
Natural Gas Company at its LNG terminal near Lake Charles, La.
General Electric's (GE) GE Oil & Gas unit said it won a $250
million contract to supply subsea wellhead systems to Petroleo
Brasileiro SA. (PBR).
-Steve Gelsi; 415-439-6400; AskNewswires@dowjones.com
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