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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Oil Prices Inch Up on Fed Hopes


NEW YORK (TheStreet) -- Oil prices staged a small rally Wednesday on speculation of further monetary easing by the Federal Reserve and a decline in crude stockpiles.

Brent crude oil for November delivery was rising 68 cents to $109.55 a barrel and West Texas Intermediate (WTI) crude for October delivery was adding 70 cents to $86.14.

The Department of Energy on Wednesday reported that crude oil inventories declined 2.2 million barrels for the week ended Aug. 19 and the American Petroleum Institute (API) on Tuesday evening said that crude inventories had declined 3.3 million barrels in that period.

This, coupled with anticipation that Federal Reserve chairman Ben Bernanke could announce additional stimulus measures during his speech this Friday at the Fed's annual symposium in Jackson Hole, Wyo., unleashed oil price potential to the upside.

Also providing some additional mileage for oil prices was Shell's (RDS.A) declaration of force majeure on its Nigerian Bonny Light exports until October, following recurrent attacks on its pipelines in Nigeria.

A handful of negative data was released on Wednesday, but traders were putting aside some of that for now.

Both the Department of Energy and API had also reported a big 1.4 million barrels and 6.4 million barrels build in gasoline stockpiles. This, as MasterCard Advisors SpendingPulse's latest weekly U.S. gasoline demand report said gasoline demand decreased by 4.2% compared to a comparable week a year ago and Moody's lowered its Japanese debt rating citing weak growth prospects.

The SpendingPulse macroeconomic indicator is based on aggregate sales and services activity in the MasterCard payments network.

The markets were also disregarding news of the possibility that Libyan leader Col. Moammar Gadhafi has essentially been toppled by rebel leaders and the civil war was coming to an end.

About 1.7 million barrels a day of oil production was lost to the Libyan civil war.

1 of 2

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 17,001.22 -38.27 -0.22%
S&P 500 1,988.40 -3.97 -0.20%
NASDAQ 4,538.5510 +6.4470 0.14%

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