Oil retreats as energy mixed on day; Quorum Health sees decline ahead of results

By Colin Hanner

Chicago, Oct. 26 – Earning reports and a swing in oil markets dictated trading for distressed debt on Wednesday, as several companies bowed to less-than-desirable quarterly reports and the continued speculation around oil supply.

Perhaps the biggest decliner of the day was Quorum Health Group Inc., which “looked like they were trading under some distress today,” a trader said.

The trader said the company’s 11 5/8% notes due 2023 were down “more than 5 points” to 79½. The company announced on Tuesday that it will report its quarterly results on Nov. 9.

In oil and natural gas, explorer and producer California Resources Corp. saw movement in its 8% notes due 2022, which were down 2½ points to 71¾, per a market source.

The company will announce its earnings on Nov. 3.

Oil retreated to under $50-per-barrel during morning trading due to speculation on the Organization of Petroleum Exporting Countries and its willingness to agree to supply cuts at the end of November.

The weekly petroleum report by the Energy Information Agency showed slight decrease in U.S. crude inventories by 553,000 barrels during the week ending Oct. 21. Previous estimates had projected a several million-barrel increase for the period.

The report seemed to do little to help the price of oil, as the decline in supply was centered on the West Coast region. Both Western Texas Intermediate crude and Brent crude settled below $50-per-barrel at close.

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