Oil prices retreat, taking oil and gas bonds along for the ride; coal sector also weaker

By Stephanie N. Rotondo

Phoenix, Feb. 4 – It was once again the oil and gas show in the distressed debt market on Wednesday, as oil prices gave back most – if not all – of the previous day’s gains.

“Oil was way up, then it was way down,” a trader said.

West Texas Intermediate crude erased all of the previous day’s gains, falling $4.15, or 7.82%, to $48.90 a barrel. Brent crude lost $31.4, or 5.42%, ending at $54.77.

The drop in oil prices was attributed to a fresh report out from the Energy Information Administration, which showed that U.S. crude stockpiles increased 6.3 million barrels last week – the fourth week in a row the data point has gained ground. That brings the total stockpile up to 413.06 million barrels, the highest level seen since the government began keeping track in 1982.

The coal sector also gave up the gains it incurred on Tuesday after Arch Coal Inc. reported a smaller-than-expected quarterly loss.

A trader said Arch’s 7¼% notes due 2021 and its 7% notes due 2019 both closed a quarter-point lower, at 25½ and 26½, respectively. The 7¼% notes due 2020 fell almost a point to 30.

Walter Energy Inc.’s 8½% notes due 2021 held in at 13½, but its 9½% notes due 2019 slipped a quarter-point to 65.

And in Alpha Natural Resources Inc. debt, the 6% notes due 2019 were seen falling a quarter-point to 27¾, though the 9¾% notes due 2018 improved by a point to 38½.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.