Market wanes; Consol, Chesapeake retreat again as oil slides; Bombardier debt walloped

By Stephanie N. Rotondo

Phoenix, July 22 – Distressed commodity names “got hit again,” a trader reported Wednesday.

For its part, gold was down nearly 1.5% early in the session, but closed 1% softer. Crude oil prices also took a dive, as West Texas Intermediate crude declined $1.76, or 3.46%, to $49.10.

The drop in oil prices came as the U.S. Energy Information Administration released its weekly inventory report, showing an unexpected 2.5 million-barrel gain for the week.

Analysts had predicted a 2.3 million-barrel decline.

The report only exacerbated oversupply concerns, especially after OPEC said earlier in the week that it would continue to maintain its production levels.

But that news put pressure on already weakened oil names such as Consol Energy Inc. and Chesapeake Energy Corp.

Elsewhere in the commodity space, FMG Resources’ bonds were also softening.

But commodity-linked names weren’t the only issues taking hits.

Bombardier Inc.’s debt declined amid concerns about demand for business jets. Those concerns were spurred by comments made by executives from B/E Aerospace Inc. regarding softening demand for aviation parts, specifically for large-cabin executive aircraft.

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