Shares of energy producers declined amid doubts about the outlook for global output. Some OPEC members in recent weeks have suggested either making deeper production cuts or bringing new participants into the effort to cut oil exports.
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One brokerage said a conference with major oil producers yielded the sense that they are determined to continue their investments, despite low prices.
"Industry titans believe the market is unsustainable and oil price equilibrium lies well north of $60-a-barrel," said analysts at Morgan Stanley, in a note to clients. Among the trends encouraging U.S. producers to expand operations are: "onshore well productivity [that] continues to improve (partially offset by rising service prices) and the likelihood of "lower offshore breakevens," the Morgan Stanley analysts said.
(-By Rob Curran, email@example.com)
(END) Dow Jones Newswires
May 12, 2017 16:30 ET (20:30 GMT)