With oil prices under pressure during on Friday, oil stocks have also experienced selling pressure during today's trading.
Shares of Suncor Energy Inc. (SU), EnCana Corp. (ECA) and Occidental Petroleum Corp. (OXY) all fell over 3%.
Around 1:00 pm Eastern Time, shares of Suncor were down $2.09 at $50.59, while EnCana stock was down down $2.47 at $66.32 and Occidental shares were down $2.51 at $74.91.
Meanwhile, PetroChina Co. Ltd (PTR), ConocoPhillips (COP), BP Plc. (BP) and Chveron Corp. (CVX), which recently sold its British oil distributor business to DCC Plc (DCC.L), also posted notable losses.
Oil prices continued its downward move on Friday and fell below $112 a barrel. Light sweet crude for September delivery moved to $111.47, down $3.56 on the session. Oil touched as low as $111.34 in electronic trading.
Prices fell as the U.S. dollar remained near long-term highs against other majors. The dollar remained near a 22-month high against the pound and added to a five-month high against the euro. Commodities usually move opposite the dollar because of the hedge value.
Oil has lost more than $35 from its record high of $147.27 on July 11. With prices at previously unseen levels, energy demand has lessened in recent weeks. Crude oil dropped on Thursday to give back a portion of Wednesday's rally. Oil fell 99 cents on the session and dipped as low as $112.59.
Before the opening bell on Friday, DCC announced that it has reached an agreement for DCC's subsidiary, GB Oils, to acquire the trade, assets and goodwill of the Chevron Limited UK "Equity Distributor" business. The consideration payable for the fixed assets and goodwill of the Business is €27.52 million, or £21.86 million, and will be satisfied in cash.
The business, trading under the Texaco brand, distributes transport fuels and heating oils to commercial, industrial, agricultural and domestic customers principally in southern England and Wales. GB Oils has also agreed to enter into a long term supply arrangement with Chevron.
DCC anticipates that the profit contribution from the business would be modest in DCC's financial year to 31 March 2009 but that it should improve significantly in the following year as the business benefits from DCC's proven experience and management skills in the oil distribution market in Britain.
It is anticipated that the transaction will be completed at the end of August 2008, after undertaking the necessary consultations with employees.
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