This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Crude Oil Falls Below $55

A host of refinery stoppages in Louisiana and Texas last week generated a market rally for gasoline prices that still reverberates, despite data showing gasoline inventories are the highest in three years.

Another indicator showing oil and gas prices could rise into the fourth quarter is the relatively high cost of energy futures compared with spot prices. Normally, contract prices decline with time, as uncertainty about the future leads to discounting.

In the energy market today, future month contracts are trading at a premium. For example, the November crude future contract is trading upward of $57 a barrel, while today's spot prices are near $55.

Analysts say the trend shows that market players are expecting demand and energy prices to rise in the short- and midterm.

"This is very unusual. There is too much crude but not enough refining and products, and no one is certain if the U.S.'s and China's economies are really growing or slowing. It's really strange," says Rick Thompson, energy trader at Alaron Trading. Thompson says oil producers have already locked in prices for the summer contracts and stored their supply for later delivery.

"Companies have already traded on the [higher future price], to the point where there is no more storage space in the country. They would need to store products in places such as the Caribbean in order to deliver it in later months at higher prices," he says.

In earnings news, Whiting Petroleum (WLL), the oil and gas production company, said first-quarter net income more than doubled from last year, driven by increased oil and natural gas production and higher realized prices. Net income increased to $26.1 million, or 88 cents a share, on revenue of $103.5 million, from $9.6 million, or 51 cents a share, on revenue of $46.7 million in the same time a year ago. Earnings missed analysts estimated average income of 95 cents a share, according to Thomson Financial. Shares declined 38 cents, or 1.13%, to $33.32.

Shares of most major oil producers climbed, spurred by the refinery deal. Exxon Mobil (XOM - Get Report) rose 77 cents, or 1.30%, to $60.19; ChevronTexaco (CVX - Get Report) increased 51 cents, or 0.95%, to $54.38; Royal Dutch/Shell (RD) jumped 61 cents, or 1.02%, to $60.36; and BP (BP - Get Report) rose 67 cents, or 1.10%, to $61.73.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
APC $39.56 -3.00%
BP $29.79 -2.20%
COP $33.59 2.10%
CHK $2.06 -33.00%
CVX $83.27 0.47%


Chart of I:DJI
DOW 15,877.65 -327.32 -2.02%
S&P 500 1,835.99 -44.06 -2.34%
NASDAQ 4,238.93 -124.2140 -2.85%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs