Energy Rally Takes a Break
Updated from 11:48 a.m.
Crude oil prices closed lower Tuesday after hitting record highs in the previous four sessions.
The benchmark U.S. crude fell $1.13, or 2.8%, to settle at $40.42 a barrel on the New York Mercantile Exchange, having flirted with $42 Monday, following an explosion that killed the head of Iraq's governing council.
Gasoline futures also lost ground Tuesday, dropping almost 4 cents a gallon, or 2.7%, to $1.38, after setting a new high yesterday.The latest leg in the energy rally came after the Iraqi official, Izzedine Salim, was killed in a car-bomb attack in Baghdad. U.S. oil prices last week, closed above $41 a barrel for the first time ever on the New York Mercantile Exchange, surpassing the previous record high set in October 1990 when Iraq occupied Kuwait. Prices have surged in recent weeks on worries about supply following attacks on oil-producing facilities in the Middle East and an increase in seasonal gasoline demand as the peak summer driving period approaches. The key Organization of Petroleum Exporting Countries producer, Saudi Arabia, has called on its fellow cartel members to increase production about 6% to help prevent any negative impact on world economic growth, but oil traders have shrugged off any possible impact because oil producers are already pumping more than their official quotas. OPEC meets with representatives of oil-consuming nations later this week in Amsterdam. Industry observers have said the meeting is a largely Saudi-backed initiative.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV