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

Oil Prices Sink on Weak Outlook


NEW YORK ( TheStreet) -- Crude oil prices settled in negative territory Tuesday as worries about a weakening economic recovery in the U.S. and troubles in Europe took precedence over the passage of a debt ceiling deal that would help the country avert a default.

West Texas Intermediate light sweet crude oil for September delivery shed $1.10 to settle at $93.79 a barrel, while Brent crude oil futures for September delivery fell 25 cents to $116.56.

oil

"After all of the furor and debate surrounding the debt ceiling in the last few weeks, the passing of a bill in Congress last night with one day to spare has been met by a whimper from the crude complex, as economic concerns dominate sentiment instead," said Summit Energy analyst Matt Smith.

The Commerce Department reported on Tuesday that personal spending decreased for the first time since September 2009, dampening hopes for robust growth going into the summer. The Commerce Department reported that personal spending for June decreased by 0.2%, after a revised 0.1% increase in May.

This comes on the heels of poor manufacturing data released by both the U.S. and China the day before.

Meanwhile, European debt woes were back in the spotlight, with Italy and Spain's weakened economies back in focus after President Obama signed legislation passed by the Senate on Tuesday afternoon by a vote of 74 to 26 to increase the nation's $14.3 trillion debt ceiling. The House of Representatives had approved the same bill Monday night 269 to 161.

The American Petroleum Institute is expected to release its weekly crude oil inventory report at 4:30 p.m. ET on Tuesday, and the Energy Information Administration is scheduled to release its report at 10:30 a.m. ET Wednesday. A 2 million-barrel build is expected, according to analysts polled by Platts.

"Traders will try to find solace in this week's Department of Energy statistics, but they might not find any. The picture is starting to become more bearish, with the economy looking quite weak," said Cameron Hanover analysts.

Natural gas futures for September delivery fell 3 cents to settle at $4.155 per million British thermal units as supply concerns stemming from the formation of Tropical Storm Don faded, and temperatures began to moderate.

Under 1% of Gulf of Mexico natural gas production stays shut after the storm, according to the Bureau of Ocean Energy Management, Regulation and Enforcement.

A Cameron Hanover report says temperatures in the Texas-Kansas mid-continent corridor are forecast to be hot, but readings will likely be more moderate in the Great Lakes and along the East Coast.

"There is nothing out there that suggests we will see a repeat of the brutally hot weather across most of the country that we had two weeks ago."

Oil and gas stocks were retreating. Marathon Oil (MRO) was tumbling 3.9% to $29.46; Occidental Petroleum (OXY) was losing 2.3% to $95.57; Eni S.p.A. (E) was falling 1.4% to $41.53; Petroleo Brasileiro (PBR) was retreating 2.2% to $33.41; Piedmont Natural Gas (PNY) was slumping 0.7% to $29.07; Gas Natural (EGAS) was shrugging off 1.4% to $11.13; and Northwest Natural Gas (NWN) was trading sideways at $44.46.

-- Written by Andrea Tse in New York.



>To contact the writer of this article, click here: Andrea Tse.

Copyright 2011 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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