This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Crude Oil Settles Above $81; Weak Supply

Stocks in this article: XOM CVX DVN

NEW YORK ( TheStreet) -- Crude oil futures slumped Tuesday, trading in a tight range before settling ahead of weak weekly inventory data.

The April crude contract shed 38 cents, or 0.5%, to settle at $81.49 a barrel, paring its losses since the price approached $80 earlier in the session.

Late Tuesday, the American Petroleum Institute, an industry trade group, said crude oil inventories rose 6.5 million barrels in the week ended Mar. 5.

The government's own data from the Energy Information Administration will be released an hour after Wednesday's opening bell. Analysts surveyed by Platts believe crude stocks rose by 2.1 million barrels last week. Schork Group analyst Hamza Khan said that was one of several factors weighing on prices Tuesday.

The reports are expected to reflect a 338,000-barrel drawdown in gasoline stocks, while distillate inventory levels probably fell by 950,000 barrels.

Several news reports suggested crude was being dragged down by the rising dollar, which itself got some lift after a Chinese official reiterated the country's commitment to buying Treasury bonds.

The dollar index, which measures the greenback against a basket of currencies, rose 0.2%.

Phil Flynn, energy analyst at PFGBEST, also highlighted an earlier Dow Jones report suggesting Chinese officials may relax the yuan's peg to the dollar, but he later discussed crude's continued difficulties holding around the $80 level.

"Psychologically, $80 is a very strong support, and most aren't convinced about what's going to take it out," Flynn said. "Bottom line, the market is a little overdone, so it's pulling back."

The United States Oil Fund ETF (USO) shed 24 cents, or 0.6%, to $39.55 and the PowerShares DB Oil Fund ETF (DBO) lost 18 cents, or 0.7%, to $27.60.

Among major integrated stocks, Exxon Mobil (XOM - Get Report) gained 30 cents, or 0.5%, to close at $66.78 and ConocoPhillips (COP - Get Report) gained 12 cents, or 0.2%, to $50.85.

Chevron (CVX - Get Report) lost 15 cents, or 0.2%, to finish at $74.49, amid plans to slash 2,000 jobs and take bids on some refining operations around the globe.

The NYSE Oil Index was fell 0.08%, while the Philadelphia Oil Service Sector Index declined by 0.6%.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

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