Oil Update: Oil Clears $73 Before Retreat

On Tuesday, crude oil prices bounded past the $73 barrier, only to pull back later in the morning and lose its earlier gains.

Benchmark crude for August delivery is currently losing 13 cents at $71.36 per barrel. The contract reached as high as $73.38 earlier. Yesterday, the price settled at $71.49 after it raced up $2.33.

The earlier upward swing was largely attributed to continuing news coming from the Niger Delta combined with the dollar's slip against the euro. Reports were swirling that Nigerian militants attacked a Royal Dutch Shell oil platform in the region. In recent months, the dollar and crude prices have been locked in an inverse relationship as investors use oil to hedge when the dollar weakens.

Later today the American Petroleum Institute will release its weekly crude inventory data. On Wednesday, the Energy Information Administration is set to release its report. Analysts surveyed by Platts forecast a drop in oil stocks by 2.2 million barrels, while also expecting a 2.1 million barrel rise in gasoline inventory.

Also in the news today, several oil and gas conglomerates are in the running for licenses to develop and produce oil in Iraq. Included in the bunch are Exxon Mobil(XOM Quote), BP(BP Quote), and ConocoPhillips(COP Quote), which each saw early gains after the market open.

Exxon Mobil was up 16 cents to $70.74. BP gained 16 cents to $48.12, while ConocoPhillips ticked up 24 cents to come to $42.45 just after the opening bell.

China Petroleum & Chemical(SNP Quote) ADRs were losing 1.3% in the early going this morning -- this after the company surged 6.4%, or $4.66, to close at $77.45 yesterday.