Crude Oil Futures Stumble

Japan announced on Friday that it was enacting trade sanctions on Iran for its refusal to abandon its nuclear program. Although the U.S. has two aircraft carrier groups in the Persian Gulf, few analysts are expecting military intervention, Pyziur says.

Meanwhile, the Associated Press reported that Iran's president, Mahmoud Ahmadinejad, has offered to stop uranium enrichment on the condition that Western nations end their own nuclear development.

Although the stance of the international community appears to be less aggressive toward Iran than it was last summer, financial markets remain concerned about the limited amount of spare crude oil capacity if Iran were to become suddenly shut in.

Lower commodity prices pushed energy stocks broadly lower. The iPath Goldman Sachs Crude Oil (OIL Quote) ETF closed down 1.5% to $35.78.

Deutsche Securities upgraded Canadian integrated energy firm Sunoco (SU Quote) from hold to buy and hiked the company's price target to between $65 and $70. Sunoco finished up 59 cents at $62.37.

Goldman Sachs upgraded the stock for E&P firm Ultra Petroleum (UPL Quote) from neutral to buy and raised its price target to $59. Ultra Petroleum was down 59 cents to $50.97.

Shares of electricity provider Entergy Corp (ETR Quote) were downgraded by Jeffries from buy to hold but climbed 17 cents to $99.83. A.G. Edwards downgraded shares of E&P company Exco Resources (XCO Quote) from buy to hold. Exco's stock slipped 5.5% to $16.93.