Market Update: Energy Stocks Decline Amid Oil Price Drop

The broader market saw a decline in energy stocks last week, with the Oil Daily 30 Composite falling 2.13% and the Dow Jones Industrial Average losing 2.5% or 268.54 points to 10,559.74. Despite the drop in oil prices, which fell to $16.84 per barrel, a few companies managed to buck the trend and post significant gains. Maverick Tube Corp., a Missouri-based pipe manufacturing company, led the way with a 20.4% increase in its stock price to $12.93, marking the third straight week of advances.

Key Takeaways:

• Maverick Tube Corp.'s stock price jumped 20.4% to $12.93, making it the top performer in the energy sector last week.
• Halter Marine Group Inc.'s stock rose 18% to $7.37, despite being involved in merger talks with an oil field service company.
• Blue Dolphin Energy Co.'s stock increased by 17.1% to $6, driven by the announcement of a deal to buy a 75% stake in American Resources Offshore Inc.
• Willbros Group Inc.'s stock rose 13.2% to $6.43, thanks to its provision of construction services, engineering services, and other specialty oil field-related services to the oil and gas industry.
• Sun Energy Partners L.P.'s stock price rose 11.5% to $5.43, following Kerr-McGee Corp.'s decision to increase the amount paid for units of Sun Energy.
• Evans Systems Inc.'s stock plummeted 78.5% to $6.71, due to its second-quarter losses and declining revenues.
• Cal Dive International Inc.'s shares fell 15.5% to $24.50, and Central Pacific Minerals N.L.'s American depositary receipts dropped 11.2% to $6.93.

Statistics:

• The Oil Daily 30 Composite fell 2.13% last week.
• The Dow Jones Industrial Average lost 2.5% or 268.54 points to 10,559.74.
• Oil prices dropped to $16.84 per barrel.
• Maverick Tube Corp.'s stock price increased by 20.4% to $12.93.
• Halter Marine Group Inc.'s stock rose 18% to $7.37.
• Blue Dolphin Energy Co.'s stock increased by 17.1% to $6.

Sources:

• The Oil Daily (TOD, June 1, 1999, p. 5)
• The Oil Daily (TOD, May 26, 1999, p. 7)