CalRes, other energy names off as crude oil gets crushed; Venezuela gyrates on downgrade

By Paul Deckelman

New York, Nov 14 – Energy names such as California Resources Corp., EP Energy Corp., MEG Energy Corp. and Denbury Resources Inc. fell sharply on Tuesday, as did marine energy driller Transocean, Inc. as world crude oil prices were crushed after the International Energy Agency issued a bearish report on anticipated global oil demand.

Hexion Inc.’s notes firmed in active trading after the specialty chemicals company reported a sales surge in the third quarter and expressed optimism on its debt repayment prospects.

Overall, though traders in distressed debt and the in the bonds of other underperforming companies and sectors said that it was another down day in their market, mirroring continued weakness in the broader high-yield bond arena.

Losers included telecom operators Frontier Communications Corp. and CenturyLink, Inc., as well as retailers Rite Aid Corp. and J.C. Penney Co. Inc.

In the emerging markets space, Venezuela’s sovereign debt and the bonds of its Petroleos de Venezuela SA state oil monopoly gyrated around after an S&P downgrade of the country’s ratings following a default on several of its bond issues.

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