Morning Commentary: Energy convertibles weak; volumes slight as market quiets ahead of weekend

By Rebecca Melvin

New York, Dec. 18 – Convertibles players on Friday were watching energy names, which were weaker in light volume as oil prices continued to drag amid worries of ongoing global oversupply.

“Not much is trading, but energy continues to be weak,” a Connecticut-based trader said.

Whiting Petroleum Corp.’s convertibles traded down to 68.5 to 69 after an earlier trade at 70, the trader said.

Chesapeake Energy Corp.’s convertibles were also quoted lower without a trade, he said.

Oil oversupply worries contributed to lower equities as well early Friday. The situation remains in focus as a lack of supply response from the Organization of Petroleum Exporting Countries combines with the expectation that Iran oil supply is going to be added to the global market in the coming months.

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