This Day On The Street
Continue to site
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

Crude Closes Above $84 Ahead of Data

NEW YORK ( TheStreet) -- Crude oil futures managed to close above $84 a barrel Tuesday after dropping as low as $82.51 a barrel ahead of inventory that's expected to show another build in crude supplies.

After the close of Tuesday's trading session, the American Petroleum Industry reported a 1.41 million barrel rise in crude oil inventories for the week ending April 9. Analysts, according to a poll conducted by Platts, had been looking for a build of 1.6 million barrels.

The report will be followed up with data from the government's own Energy Information Administration on Wednesday morning. Gasoline stockpiles are projected to show a decline of 1.26 million barrels while distillates are slated to show an additional 1 million barrels, according to estimates.

Phil Flynn, energy analyst at PFGBEST, said continually swelled inventory levels are catching up to prices.

Although the May delivery crude contract plunged into $82-a-barrel territory Tuesday, it managed to lose only 29 cents, or 0.3%, during the session. It settled at $84.05 a barrel.

Adding to the fundamental picture, the International Energy Agency boosted its 2010 demand forecast by 30,000 barrels a day from last month's estimates, but suggested the world's market for crude may be "overheated," according to a report from the Associated Press. The group said inflated prices could hinder economic recovery efforts.

"I think, more than anything, there's a sudden realization by the world that there's plenty of oil out there," Flynn said. "Inventories are the anchors that may pull the market back down. As much as they tried to ignore it last week, it's going to be harder and harder to justify the higher prices."

"Based on expectation of demand, there's still plenty of oil out there," he continued. "And it looks like the market is coming back down to earth and refocusing on fundamentals ahead of the summer driving season."

Stocks closed marginally higher Tuesday after shrugging off a less-than-stellar earnings announcement from Alcoa (AA) and a wider-than-expected trade gap in February. Energy and basic materials were the day's weakest sectors. The Philadelphia Oil Service Sector index lost 1.1%, while the NYSE Arca Oil index fell 0.3%.

Chevron (CVX - Get Report) slipped 0.3% lower to $80.21 and Exxon Mobil (XOM - Get Report) fell 0.1%, to $68.66.

Key service names, however, were dropping more precipitously than their integrated brethren. Cameron International (CAM - Get Report) and National-Oilwell Varco (NOV - Get Report) ended the session more than 2% lower. Oceaneering International (OII - Get Report) slumped 0.8% at the close and Baker Hughes (BHI - Get Report) shed 1.3%.

Elsewhere on the Nymex, the May natural gas contract surged 3.8% higher, adding 15 cents to settled at $4.16 per million British thermal units. May heating oil lost nearly a penny, or 0.2%, to settle at $2.2 a gallon, while May gasoline added a penny, or 0.6%, to settle at $2.31 a gallon.

-- Written by Sung Moss and Melinda Peer in New York.

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BHI $39.78 -4.17%
CAM $62.93 1.43%
CVX $82.99 -0.06%
NOV $26.34 -1.31%
OII $26.78 -4.56%


Chart of I:DJI
DOW 15,660.18 -254.56 -1.60%
S&P 500 1,829.08 -22.78 -1.23%
NASDAQ 4,266.8370 -16.7550 -0.39%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs