Energy-Energy was one of the worst sectors in the market on weakness across the board despite flattish crude.$XLE

· Energy was one of the worst sectors in the market on weakness across the board despite
flattish crude.

· Integrateds were off around 5%, led lower by BP which now sits around a 14-year low after falling over 9% this week. A lot of noise came out on BP / Gulf but in the end it’s a lot of the same…the spill is still ongoing, Obama is still looking to come down harshly on BP, and there is still uncertainty over BP’s future.

· Services/drillers were off sharply, falling 6-8% or more amid worries of numerous companies declaring force majeure and potentially leaving the Gulf. The group saw a little short covering rally after a New Orleans judge lifted the moratorium, but it proved short lived amid worries of a new ban and the possibility of companies declaring force majeure.

· Refiners were mostly higher on the week despite mixed crack spreads. The group was lifted by HOC following an upgrade by a competitor early in the week.

· E&Ps were off sharply and one of the worst spaces in the group. The group was hit on talks  of a drilling moratorium in the Marcellus Shale and also a sharp slide in natural gas prices on  worries of cooler weather over the next couple weeks.

· Coals were also off sharply on lower natural gas prices, led lower by PCX (-15%) which took
a hit after it was forced to close its Number 1 Harris mine in W. Virginia for safety reasons.  BTU was an outperformer, rising on news that Kevin Rudd was ousted as Australia’s PM and  that the new PM might levy a softer mining tax.

· Shipping/tankers were off 3-4% and outperformed the group a bit despite a 20-straight day
decline in the Baltic Dry Index.

· Solars were off 6-9% this week on continued worries over subsidy cuts in Europe. The latest
to hit was Italy (Thursday night), although a few names actually rallied off it as investors  hoped the worst might be over amid the removal of another overhang.