Crude Oil Futures Slide as Dollar Rises

NEW YORK (TheStreet) -- Crude oil futures backtracked Thursday as the U.S. dollar regained some ground against the euro and flat jobless claims underscored fears of a sluggish recovery.

Light, sweet crude for January delivery shed $2.14 to settle at $77.96 a barrel. Natural gas for December delivery rose 2% to $4.34 per million British thermal units during. Reformulated gasoline futures shed 2.1% to $1.97 and home heating oil was down 2.5% cents to $2.

The Energy Information Administration said natural gas supplies added 20 billion cubic feet to 3.83 trillion cubic feet in the week ended Nov. 13, resulting in inventory levels that are 10% higher than last year and 12.3% above the five-year average. The news came a day after the administration said crude stocks fell by 900,000 barrels -- a better-than-expected decline, but not enough to push oil prices past the $80 a barrel barrier.

Shares across the sector reflected concerns about weak energy demand with natural gas producers such as Chesapeake Energy (CHK Quote) and Devon Energy(DVN Quote) lost 2.9% and 3.5%, respectively. The United States Natural Gas Fund(UNG Quote) was down by 4 cents, or 0.5%, to $8.94.

Marathon Oil(MRO Quote) shares fell by $1.37, or 4.0%, to close at $33.33 following news that capital spending would be lower in 2010 as the company continues to focus on cost controls. Integrated oil stocks traded broadly lower on weak oil prices on Thursday with ConocoPhillips(COP Quote), Chevron(CVX Quote) and ExxonMobil(XOM Quote) finishing lower by 1.9%, 2.0% and 0.8%. The United States Oil Fund(USO Quote)shed $1.01, or 2.5%, to $39.66.

-- Written by Melinda Peer in New York.