This Day On The Street
Continue to site
ADVERTISEMENT
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

Oil Hits New Intraday Record

West Texas crude futures topped $111-a-barrel Thursday on the New York Mercantile Exchange, a new record, but it later retraced its gains to end roughly flat for the day.

Oil for April delivery was 11 cents higher to $109.81 a barrel. Brent crude rose 66 cents to reach $106.93 a barrel. Reformulated gasoline fell 4 cents to $2.69 a gallon, and heating oil gained 3 cents to $3.06 a gallon.

The near-term natural gas contract advanced 14 cents to finish at $10.16 per million British thermal units.

An early advance for oil was sparked by a slide in the value of the U.S. dollar against the euro and the yen. The euro climbed to a record high of $1.5625 against the dollar before backing off to $1.5571. The dollar fell to its lowest value against the yen since 1995, touching the 99.75 yen level before settling at 100.73.

With most commodities posting impressive returns in recent months, Investors are streaming into the commodity space to protect themselves from the depreciating greenback.

Crude oil wasn't the only commodity to benefit from the declining dollar. Gold topped $1,000 an ounce for the first time before settling at $994 an ounce. The Dow Jones-AIG Commodity Index rose 0.5% to 218.18.

The need to find safe havens for their investment funds appears so strong that investors are persistently ignoring bearish economic indicators that normally hurt commodity prices. New inventory figures released Wednesday by the Energy Information Administration showed that U.S. crude stocks rose three times more than what analysts were expecting. While these data would normally hurt crude prices, it has had little affect on this week's trading activity.

The dollar has fallen 5.5% against a basket of six major world currencies since early January, according to Stephen Schork, principal at the Schork Group. Some economists perceive a weak dollar as beneficial to the economy because it makes U.S. goods more attractive to export.

However, the price of crude oil rose from about $80 a barrel to nearly $110 over the same period. Schork points to the falling dollar as a major factor in oil's rise. "Whatever benefit the U.S. administration is trying to derive out of its weak-dollar policy via exports is being compromised by imported oil costs," Schork said.

Meanwhile, energy stocks were mostly to the downside. ConocoPhillips (COP - Get Report) dropped 0.8% to $77.33 a share. BP (BP - Get Report) shares fell 1.3% to $65.04, and Exxon Mobil (XOM - Get Report) edged 0.8% higher to $86.63.

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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BP $39.71 -0.50%
COP $59.65 1.00%
XOM $82.86 0.40%
AAPL $125.69 -0.25%
FB $87.25 -0.34%

Markets

DOW 17,776.91 +93.33 0.53%
S&P 500 2,081.34 +12.58 0.61%
NASDAQ 4,997.4590 +5.5190 0.11%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs