This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Crude Oil Prices Plunge

Crude oil futures tanked more than 4% Monday as traders unwound bullish positions in the wake of Iran's decision to release 15 detained British sailors and marines.

As a result, all of the gains made in the crude market since the crisis began on March 23 have been erased. Oil peaked slightly above $66 on March 29 before easing when Iran and the U.K. adopted a diplomatic posture in the standoff.

The May light sweet crude contract fell $2.77 to $61.51 a barrel in trading at the New York Mercantile Exchange. Reformulated gasoline slipped 4 cents to $2.09 a gallon, and heating oil was down 4 cents at $1.82 a gallon.

The near-term natural gas contract closed a penny lower at $7.55 per million British thermal units.

Energy traders appeared to shrug off an announcement from Iranian President Mahmoud Ahmadinejad that his country has begun to enrich uranium "on an industrial scale" with a system of 3,000 networked centrifuges. It was previously thought that Iran had fewer than 200 centrifuges.

With as many centrifuges as it claims to have, Iran could produce enough weapons-grade uranium to build a nuclear weapon within one year, according to analysts. Worries over Iran's nuclear ambitions have boosted energy prices in recent months.

The retraction of the May crude contract back below the $62 level suggests that traders are being complacent in thinking that U.N. sanctions against Iran over its advancing nuclear program won't invite supply disruptions, according to Tim Evans, an energy analyst at Citigroup Global Markets.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs