NEW YORK (TheStreet) -- Oil prices struggled alongside equities Monday as market watchers continued seeing less encouraging signs in the economic landscape.
The October delivery contract for crude on the Nymex was falling 65 cents to $74.52 a barrel. Phil Flynn, an energy analyst at PFGBest, said oil was coming under pressure because of continuing indicators fueling lingering doubts about economic growth, influencing the clear correlation between the major stock market averages and oil futures Monday.
"[Oil prices are] kind of following the stock market," he said, putting this week's jobs report and other economic figures on the front of traders' minds, and relegating weekly oil supply statistics to second-tier status among the datastream. "Despite the fact fundamentals are overwhelmingly bearish, we're following the stock market because it's an indicator of how the overall economy is doing."
Flynn also noted that Federal Reserve Chairman Ben Bernanke's deflation concerns "in a weird way" are also keeping prices higher than fundamentals should dictate.The Dow Jones Industrial Average was losing 58 points, or 0.6%, at 10,093. A strengthening dollar against the euro, too, was pressuring crude, while the more broadly tracking dollar index was up 0.2% Monday. Energy stocks were only egging on the larger decline in stocks, as the NYSE Arca Oil index was shedding 0.7% and the Philadelphia Oil Service Sector index was dropping 0.1%. Blue-chip integrated players Exxon Mobil (XOM) and Chevron (CVX) were sliding 0.7% each. Elsewhere on the Nymex, the October natural gas contract was surging 13 cents to $3.83 per million British thermal units. Heating oil for October delivery was sliding 1-cent lower to $2.04 a gallon, while October gasoline was losing nearly a penny at $1.91 a gallon. --Written by Sung Moss in New York. >To contact the writer of this article, click here: NAME. >To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV