Stone Energy (NYSE:SGY) was one of the main casualties among oil stocks on Tuesday as the oil price fell to around two-week lows and futures contracts nearly broke support at $36.
Like with the recent fortunes of the oil price, Stone Energy stock is up 24% since a 52-week low of $1.26 on February 24, but it is also a hefty 92% off a 52-week high of $19.65 marked on April 16 last year.
Stone Energy's fortunes are a stark reminder of how badly hit small energy stocks can be through no fault of their own. Just the right stock in the right place at the wrong time. Nor is Stone Energy alone in underperforming its own ticker in the sell-off, but it is certainly one of the worst hit on Tuesday.
Oil prices are reversing a month-long rally as the focus shifts back to the oversupplied market. Disappointment on Tuesday that OPEC countries may fail to curb gushing supply together with expectations of a fifth successive record high US oil inventory report on Wednesday have driven the US oil benchmark West Texas Intermediate down 2% this session to $36.46.
Earlier in the session, the contract came within a cent of breaking $36. Oil prices have rallied since around February 19 when barrels were changing hands for $29.64.
Adding to the strife for oil prices was news from OPEC on Monday that demand for its crude in 2016 will be less than it previously expected. This is due to more resilient supply from the organisation's competitors, such as the United States, which is adding to the market's excess supply.
A component of the small-cap S&P600 index, Stone Energy operates in the Gulf of Mexico basin. Its shares were down 17.2% at $1.54, while the overall index was down 1.4% at 656.
Elsewhere on the bourse:
RISERS
Apple (NASDAQ:AAPL) shares rose 2% to $104.58 after its latest response to the US Justice Department which is trying to convince the IT behemoth to unlock the iPhone of one of the San Bernardino shooters. Separately, Morgan Stanley issued a report which sees iPhone demand ahead of consensus.
Amazon.com (NASDAQ:AMZN) shares rose 0.64% to $577.02 and outperforming a softer Nasdaq ticker, after the company launched AWS Data Migration Service on Tuesday, a business geared to help companies transport data from their own computers to Amazon data centres.
FALLERS
Valeant Pharmaceuticals (NYSE:VRX) shares compressed by 51% to $33.54 and 50.7% to C$45.14 after the drugmaker earned an adjusted $2.50 per share for the fourth quarter, 11 cents below estimates, though revenue did come in above forecasts. Valeant's report had been delayed due to CEO Michael Pearson's medical leave, and the company said this report is considered "preliminary" while it reviews its financial reporting practices and internal controls. The company also cut its revenue forecast for the year.
Tiffany & Co (NYSE:TIF) shares fell 2.6% to $70 after analysts at Citi downgraded the luxury goods retailer to "neutral" from "buy." That advice came after the stock rebounded about 20% from its most recent low. Citi said it does not have confidence that near term sales trends will improve.