Energy stocks finished the day lower, underperforming the broader markets, led to the downside by equipment services and drillers, while refiners outperformed on the day after last week’s underperformance. Within the services group shares of Schlumberger fell 4% after the company warned on Monday while presenting at the Howard Weil Conference that North American activity was coming in lower-than- expected in the first quarter, as fewer rigs were going back to work than it had expected.

WTI crude closed at $93.74 up $0.29 or 0.31%, recovering from the lows of the session while Brent futures fell in choppy trade, undermined by falling stocks and a stronger dollar amid an unusual bank bailout proposal for Cyprus threatened to trigger fresh turmoil in the euro zone. A proposal that Cyprus would tax depositors as part of its bailout plan sparked fears of a run on some banks in the region, driving down the euro and other riskier assets such as Asian shares and base metals. Oil markets will remain volatile for the next few days as investors watch for any spillover of the developments in Cyprus to other EU nations, analysts said. Cypriot ministers were trying on Monday to revise a plan to seize money from bank deposits before a parliamentary vote on Tuesday that will secure the island's financial rescue or could lead to its default, with reverberations across the euro zone. Technical signals are mixed for Brent as it is not clear that a rebound from the March 13 low has completed, Reuters technical analyst Wang Tao said. U.S. oil may drop to $91 as it failed to break resistance at $93.72 for the second time.

Natural gas futures trimmed gains after a hitting a 17-month high to close higher by $0.010 or 0.26% to $3.882 after below normal late-winter temperatures and strong draws from inventory. Cold late-winter weather has helped power the front contract up about 25 percent in the last four weeks, turning the chart picture more supportive as prices broke through some key technical resistance along the way. Chart watchers noted the recent move up has been accompanied by relatively steady gains in open interest, a bullish sign indicating that new buying, not short covering has been fueling the gains.

U.S. INTEGRATEDS

(Late Friday) Reuters - Chevron Corp. said it expects to complete repairs to a fire-damaged central crude distillation unit at its 245,000 barrel per day (bpd) San Francisco Bay-area refinery in Richmond, California by the end of March.

(Saturday) Reuters - Exxon Mobil Corp warned of planned flaring at its 149,500-barrel-per-day (bpd) refinery in Torrance, California, according to a filing with state pollution regulators on Saturday.

INTERNATIONAL INTEGRATEDS

(Saturday) Reuters - Royal Dutch Shell will spend more than $1 billion this year developing one of Iraq major oilfields, where it will resume operations on May 1, officials said on Saturday. "The figure for the budget will exceed one billion dollars," said Mehdi Badi, the head of the joint management committee for the field. The Majnoon field was shut down in June for maintenance and to bring new production facilities online.

Reuters - Norway oil and gas firm Statoil said it has resumed production at the Oseberg field in the North Sea after it was shut last week.

Reuters - Statoil and BG are going ahead with plans to build a liquefied natural gas terminal in Tanzania after Statoil made its third gas discovery in the region in a year, Statoil's exploration chief said in an interview.

Reuters - Total said it has sold a 25 percent stake in its Italian Tempa Rossa field to Japanese trading house Mitsui E&P Italia for an undisclosed amount. Total retains a 50 percent interest in the Gorgoglione concession and operatorship while Shell holds the remaining 25 percent.

U.S. E&PS

Global Hunter cut their rating of Callon Petroleum Co. to ‘Neutral’ from ‘Accumulate’.

Press Release - Chesapeake Energy Corporation announced that it is commencing a public offering of $2.3 billion in aggregate principal amount of its senior notes, which the company expects will be issued in three separate series, one maturing in 2016, another maturing in 2021 and the last maturing in 2023.

Press Release - FX Energy, Inc. reported a successful drill stem test (DST) of the Company's Mieczewo-1K well. Located in Company's Fences concession in central Poland, this exploratory well flowed gas with no water in this first DST. Andy Pierce, Vice President of Operations, remarked, "We are encouraged with this initial DST, but keep in mind we've only drilled a few meters into the pay zone so far. We have more drilling, coring and testing to do before we can say for sure whether this is a producible gas deposit. But so far everything looks just like we expected."

Press Release - Magnum Hunter Resources Corporation announced that, due to the reasons previously disclosed in its SEC filings and as further described below, the filing of the Company's Annual Report on Form 10-K for the year ended December 31, 2012 will be delayed beyond the extended due date of March 18, 2013. The Company is also furnishing in this press release selected unaudited financial and operating data for the three months and twelve months ended December 31, 2012.

Press Release – Williams Companies announced today that it has sanctioned construction of a propane dehydrogenation (PDH) facility in Alberta, Canada. The new PDH facility, the first and only in Canada, will allow Williams to significantly increase production of polymer-grade propylene from its Canadian operations. Williams is the only company in Canada currently producing polymer-grade propylene, a valuable petrochemical feedstock used in plastics manufacturing.

CANADIAN E&PS

· IE reported 4Q’12 loss per share of ($0.04) versus Thomson Reuters I/B/E/S estimate of ($0.02).

Salman Partners raised their rating of Canacol Energy to ‘Buy’ from ‘Speculative Buy’.

Press Release - Ivanhoe Energy filed its year-end financial report on Form 10-K with the United States Securities and Exchange Commission for the year ended December 31, 2012. The divestitures of the Zitong Block and the Pan-China Resources subsidiary strengthened the balance sheet by providing an initial cash infusion of $131.8 million, allowing the Company to retire its short-term debt. The remaining pre-tax proceeds of just over $14 million, less any additional adjustments, are expected by mid-year 2013. The Company posted a net loss from continuing operations of $64 million, which represents a year-over-year increase of $37.2 million.

OIL SERVICES

Press Release - Halliburton opened its newly constructed Completion Technology and Manufacturing Center in Singapore today, significantly expanding the Company's Completion Tools technology and manufacturing capacity. Completion Tools, a product service line in Halliburton's Completion and Production division, enables customers to economically and efficiently complete their wells by providing the design, selection and provision of equipment and services to optimize well production. This additional capability will allow the Company to continue to deliver high-quality products to a broad and growing customer base in the Eastern Hemisphere.

Reuters - Schlumberger Ltd, the world's largest oilfield services company, warned on Monday that North American activity was coming in lower than expected in the first quarter, as fewer rigs were going back to work than it had expected.

DRILLERS

Reuters - Transocean has rejected proposals from shareholder Carl Icahn to issue a cash dividend and elect new members to its board, with the FMHR team.

REFINERS

Cowen Securities cut their rating of Northern Tier Energy to ‘Hold’ from ‘Buy’.

Reuters - Valero Energy Corp said a hydrocracker restarted over the weekend and was increasing to planned rates at its 292,000 barrel-per-day (bpd) refinery in Port Arthur, Texas.

MLPS

Press Release - SunCoke Energy, Inc. and VISA Steel Limited announced the official launch of their coke making joint venture in India. The new joint venture will be called VISA SunCoke Limited. SunCoke Energy holds a 49% interest in the joint venture, with VISA Steel holding the remaining 51%. SunCoke has invested approximately Rs. 368 Crores (USD 67 million) to acquire a 49% stake in the joint venture.