Crude Futures Find Buyers
Energy futures were broadly higher Tuesday as traders re-entered the commodities market at low prices after the previous session's sizable dip.
The May light sweet crude contract edged ahead 38 cents to close at $61.89 a barrel at the New York Mercantile Exchange. Reformulated gasoline finished 2 cents higher at $2.12 a gallon, and heating oil was up 4 cents to $1.86 a gallon.
Natural gas advanced more than 4% to close at $7.87 per million British thermal units. A blast of cold weather blanketing much of the country since the first of April is largely responsible for the rise in natural gas prices, according to Phil Flynn, senior analyst at Alaron Trading.
Also supporting the gains are concerns over tight supplies as companies refill their storage tanks after the winter's withdrawals, as well as a recent study predicting an above-normal hurricane season for the Atlantic Ocean and the Gulf of Mexico.However, incorrect predictions made since Hurricane Katrina have reduced the effect that storm forecasts have on natural gas prices. "Every year that goes by after Hurricane Katrina, the hurricane premium built into natural gas prices gets smaller," Flynn says. "If forecasters are incorrect this year after missing big last year, they will likely reassume their old role as fortune-tellers."
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 Plus 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