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by Stockwatch Business Reporter

West Texas Intermediate crude for November delivery added five cents to $85.82 on the New York Merc, while Brent for November added 16 cents to $90.21 (all figures in this para U.S.). Western Canadian Select traded at a discount of $12.55 to WTI ($73.77), up from a discount of $12.85. Natural gas for November added 1.4 cents to $3.85. The TSX energy index lost 4.77 points to close at 260.49.

Talisman Energy Inc. (TLM) added three cents to $8.16 on 20 million shares. There was both good and bad in a new Standard & Poor's report. Minutes before the close yesterday, the ratings agency lowered its long-term corporate and senior unsecured debt ratings for Talisman to BBB-minus, one grade above junk, from BBB, citing "sluggish production growth" and high costs. Talisman is trying to improve its costs, but this is difficult, and not only because the S&P cut will raise its costs of borrowing. The company has to spend hundreds of millions every year to keep up assets it does not even want. It has been trying to sell its problematic interests in various regions, particularly the North Sea and Iraqi Kurdistan, but has not been able to attract buyers. S&P put the annual drain from non-core assets at $900-million. Even if Talisman were to find someone to take on these headaches, said S&P, "[better] credit metrics due to significant asset sales alone would not be sufficient for a positive rating action." The company will have to improve its operating costs and per-barrel profits as well. S&P did say that it expects gains from asset sales and expanding natural gas liquids production, so it changed its credit rating outlook to "stable" from "negative." It previously downgraded this rating to "negative" from "stable" in August, 2013.

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