Crude Below $71: Oil Alert

Updated to reflect stock prcies after the market open.

NEW YORK (TheStreet) -- Monday morning was showing another downward move for oil futures as the front-month contract was trading below $71.

Light, sweet crude for October delivery was down $2.28 to $70.46 a barrel in electronic trading on the New York Mercantile Exchange. On Friday, the price on the contract settled at $72.74 after gaining 25 cents.

Media reports were blaming a host of reasons for the early morning tumble: creeping doubts about a near-term economic recovery, a strengthening dollar and continuing inventory fears, among others. But the morning slide comes nearly a weak after prices tested the $75 threshold.

Elsewhere, in the services realm, Baker Hughes(BHI Quote) announced plans to buy BJ Services(BJS Quote) for $5.5 billion in a cash-and-stock deal.

After the announcement on Monday, BJ Services shares were adding $1.36, or 8.8%, to $16.79 in early morning trading action. Baker Hughes shares had fallen by 6.9%.

Among the oil majors, Exxon Mobil(XOM Quote) was losing another 47 cents at $69.65 before the market open Monday. On Friday, the shares dropped 74 cents to close at $70.12.

Also on Friday, ConocoPhillips(COP Quote) finished mostly flat after losing 3 cents at $45.70. Chevron(CVX Quote) closed in the red after losing 32 cents to end at $70.68.

-- Written by Sung Moss in New York

Follow TheStreet.com on Twitter and become a fan on Facebook.