Crude Oil Rally Endures

Although tensions with Iran lifted energy prices, weakness in U.S. equity markets prevented traders from being too bullish. The Dow Jones Industrial Average finished 72 points lower at 12,397.

Energy traders will be paying close attention to new gasoline inventory numbers being released Wednesday by the Energy Information Administration. Gasoline inventory and demand figures have recently been more bullish than analysts were expecting.

Gasoline futures have risen 34% since mid-January, pulling crude futures along with them. "The key question now is if the complex will clear $2.08 resistance and push to $2.30," Meir wrote in an email.

Elsewhere, BP (BP Quote) has cut output from its 420,000 barrel-per-day refinery in Whiting, Ind., after a small fire erupted there on Thursday. A 175,000-bpd catalytic cracker, which was supposed to undergo maintenance in early May, is now expected to be operating at reduced rates for four to six weeks.

Energy stocks were mostly lower. Chevron (CVX Quote) and ConocoPhillips (COP Quote) slid fractionally, while Exxon Mobil (XOM Quote) rose 0.34%.

E&P firm Carrizo Oil & Gas (CRZO Quote) was upgraded by Keybanc Capital Markets to buy from hold, and its shares climbed 3.1% to $34.12.

BMO Capital Markets downgraded natural gas provider Enbridge (ENB Quote) to market perform from outperform, sending the stock lower by 1.4% at $32.77.