SECTOR COMMENTARY

Oil and gas stocks closed mixed on the day with refiners experiencing the largest declines after today’s bearish inventory report which showed higher than anticipated builds in gasoline supplies and on profit-taking ahead of earnings.

WTI closed at $94.17 up $1.58 or 1.71% after government data showed a larger-than-expected drop in inventories while gains in Brent were capped by expectations for increased Iranian and Libyan supply. The rally was exacerbated by the nearing expiration of both oil contracts which forced traders to buy contracts and cover positions.

Henry Hub futures fell $0.044 or 1.01% to $4.325 as investors took profits made ahead of data expected to show record drawdowns in storage after last week's severe cold. Analysts polled by Reuters expected the weekly storage draw for the week ending Jan. 10 to range from 278 bcf to 315 bcf with the average forecast at 301 bcf. A drawdown of that scale would top the 285 bcf record draw set in December.

U.S. INTEGRATEDS

Reuters - ExxonMobil reported a release of benzene due to an overhead stream flaring early Tuesday at its 503,000 barrel-per-day (bpd) Baton Rouge, Louisiana, refinery, according to a filing with regulators.

INTERNATIONAL INTEGRATEDS

Reuters - Italian oil and gas group Eni said on Wednesday it had bought back 755,000 of its own shares in a first operation in its program to buy back stock for a value of up to 6 billion euros.

Reuters - Russia's top gas producer Gazprom said on Wednesday Azerbaijan had stopped gas supplies to Russia from Jan. 13 "due to technical reasons".

(Late Tuesday) Reuters - Brazil's state-run oil company Petrobras, said on Tuesday its proven reserves rose 1.9 percent to 13.1 billion barrels of oil and equivalent natural gas (boe) in 2013 from the previous year.

(Late Tuesday) Reuters - Royal Dutch Shell said its 156,400 barrel-per-day refinery in Martinez, California was undergoing maintenance.

Reuters - Total lost 500 million euros ($684 million) last year in its refining business in France, Chief Executive Christophe de Margerie told a hearing of the French parliament's economic affairs committee on Wednesday.

CANADIAN INTEGRATEDS

Reuters - Husky Energy Inc. said a crude unit was brought back online Tuesday night and its 155,000-barrel-per-day Lima, Ohio, refinery was ramping up to normal production.

U.S. E&PS

Press Release - Magnum Hunter Resources Corporation announced today a 23% increase in the quantity of the Company's estimated total proved oil and natural gas reserves at December 31, 2013, as compared to such reserves at December 31, 2012

Press Release - Rex Energy Corporation announced its fourth quarter 2013 and full year 2013 production results and price realizations, provided an operational update, and issued its initial 2014 capital expenditure budget and guidance. Fourth quarter 2013 production volumes were 110.4 MMcfe/d, an increase of 12% over the third quarter of 2013 and 49% over the fourth quarter of 2012, consisting of 76.4 MMcf/d of natural gas and 5.7 Mboe/d of oil and NGLs.

OIL SERVICES

Press Release - Forum Energy Technologies, Inc. announced today that fourth quarter 2013 adjusted earnings per share (a non-GAAP financial measure) are estimated to be between $0.36 and $0.38. This is below the company`s previous guidance range of $0.42 to $0.46.

REFINERS

Reuters - Units at Marathon Petroleum Corp's 451,000-barrel-per-day Galveston Bay, Texas, refinery were operating normally following a power outage Tuesday afternoon, energy intelligence firm Genscape reported.

Reuters - Tesoro Corp. said planned, unspecified maintenance was continuing at its Golden Eagle refinery in Martinez, California.

MLPS

Wunderlich Securities initiated coverage of Markwest Energy Partners L.P.with a ‘Buy’ rating.

BofA Merrill Lynch upgraded Markwest Energy Partners L.P. to ‘Buy’ from ‘Neutral.’

Goldman Sachs downgraded Suburban Propane Partners L.P. to ‘Sell’ from ‘Neutral.’

(Late Tuesday) Press Release - Targa Resources Corp. announced today that its board of directors has declared a quarterly cash dividend of $2.43 per common share on an annualized basis, for the fourth quarter 2013. The approved dividend represents increases of approximately 7% over the previous quarter's dividend and 33% over the dividend for the fourth quarter 2012.