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 Rebounding Ahead of Supply Data

NEW YORK ( TheStreet) -- Crude oil futures broke a multiday losing streak Tuesday, as prices rebounded ahead of key demand data due out late today and early Wednesday.

Financial markets have been under pressure since the Securities and Exchange Commission announced fraud charges against Goldman Sachs (GS) last week. On Monday, crude lost ground because of lingering uncertainty surrounding the legal imbroglio, coupled with heightened jet fuel-demand concerns caused by the volcanic ash fallout in Europe.

But oil began recovering and picked up Tuesday, while the major stock market averages traded moderately higher, building on a late-Monday surge, after Goldman offered strong first-quarter profit figures in the morning.

The May delivery crude contract, which is set to expire later today, was adding $1.80 to $83.25 a barrel. The more heavily traded June delivery contract was trading $1.22 higher at $84.35 a barrel.

"What we're really seeing is just a trimming of some of Monday's losses," said Darin Newsom, senior analyst at Telvent DTN, about today's rise in crude prices. "But all in all, we're still seeing bearish fundamentals."

Investors will get another peek at just how bearish those fundamentals remain as a collage of inventory data is scheduled for release. The industry's own American Petroleum Institute will release last week's supply data today at 4:30 p.m. EST, while the government's Energy Information Administration will unveil its own statistics on Wednesday at 10:30 a.m. EST.

Analysts surveyed by Platts expect last week's crude stockpiles to reflect a 300,000-barrel buildup, while distillates are forecast to rise by 840,000 barrels. Observers think gasoline supplies, which will be of particular interest to investors ahead of the summer driving season, rose by 100,000 barrels.

The higher prices were giving a lift to energy stocks, which, in turn, were helping prop up the rest of the market. The NYSE Arca Oil index was adding 1.6%. The servicing sector was showing particular strength, with the Philadelphia Oil Service Sector index improving 3.9%, led by a more than 4% surge in shares for each of Noble (NE - Get Report), Baker Hughes (BHI - Get Report), Halliburton (HAL - Get Report) and Transocean (RIG - Get Report).

On the Dow, shares of Chevron (CVX - Get Report) and Exxon Mobil (XOM - Get Report) were trading 0.8% and 1.2% higher, respectively.
1 of 2

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
WFT $7.99 -2.56%
BHI $45.54 -3.92%
CVX $101.32 -1.93%
HAL $40.44 -3.83%
NE $10.44 -5.35%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs