Wednesday, April 13, 2011

Exco (XCO) (TSO) (VLO) (CHK) Crushed as Oil Corrects

A general correction in commodities as a result of the plunge in oil prices pressured the energy sector, with Tesoro Corporation (NYSE:TSO), Valero Energy (NYSE:VLO), Exco Resources Inc. (NYSE:XCO) and Chesapeake Energy Corp. (NYSE:CHK) all closing down Tuesday.

Crude oil prices for May delivery dropped as much as 63 cents, or 0.6 percent, to $105.62 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $106.01 at 10:14 a.m. Sydney time. Yesterday, it dropped $3.67 to $106.25. Prices fell 5.9 percent on April 11 and 12.

The U.S. increased its crude-oil price estimate for 2011 to an average $106.38 a barrel from $101.77 in March, according to the Energy Department’s Short-Term Energy Outlook.

Chesapeake Energy Corp. closed Tuesday at $31.93, falling $1.41, or 4.23 percent. Exco Resources Inc. closed at $20.77, down $0.14, or 0.67 percent. Valero Energy closed at $27.16, dropping $0.40, or 1.45 percent. Tesoro ended the session at $25.22, declining $0.43, or 1.68 percent.

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