This Day On The Street
Continue to site
ADVERTISEMENT
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

Oil Prices Climb for Sixth Day on Weaker Dollar, Progress in Europe


NEW YORK ( TheStreet) -- Oil prices were rallying for a sixth consecutive day on signs that the eurozone was coming closer to agreeing on a solution for its massive debt woes and a weaker dollar.

The December Brent crude oil contract was gaining $1.15 to $109.20 a barrel and West Texas Intermediate (WTI) light sweet crude oil for November delivery was rising 29 cents to $86.10. The Dow was up more than 150 points and the U.S. dollar index was slumping by 0.9%.

In another sign that Europe is nearing a resolution to its debt crisis, political parties in Slovakia agreed to let the country's parliament approve an expansion of the European Financial Stability Facility by Friday at the latest. The announcement came a day after Slovakia voted against the measure, making it the only eurozone country to oppose the July 21 agreement to increase the fund.

Also, the European Commission has recommended that Greece receive another round of bailout funding and that a permanent eurozone rescue fund be launched by the middle of next year.

Crude oil prices "are now well above the median, green Bollinger band technical analytic tool . While this gives them a certain amount of bullish credit on the charts, it also takes us to that point where prices may now have a limited upside. Prices are starting to get overbought," warn Cameron Hanover analysts. "That does not mean that they have to sell off here soon, but it does suggest that the upside is going to be more difficult to sustain from here," they added.

As oil prices remain at relatively high levels, and with oil continuing to be the most striking and profitable piece of their earnings profiles, big oil companies such as Chevron (CVX - Get Report), Exxon Mobil (XOM - Get Report) and ConocoPhillips (COP - Get Report) are expected to handily beat expectations in this quarter, according to energy trader Dan Dicker.

The latest MasterCard SpendingPulse gasoline demand report shows that gasoline consumption continued to decrease as prices at the pump are still more than 23.2% higher than a year ago for the week ended Oct. 7. This, even though prices have posted a noticeable decline in the last four weeks.

The report says U.S. motor gasoline demand decreased by 2.5% for the week ended Oct. 7 compared with the same time a year ago, while the four-week moving average posted its twenty-ninth consecutive year-over-year decline, down 2.3% compared to a similar period last year.

A macro-economic indicator, SpendingPulse reports on national retail sales and is based on aggregate sales and services activity in the MasterCard payments network.

Carrizo Oil & Gas (CRZO - Get Report) was gaining 3% to $23.09; Gulfport Energy (GPOR - Get Report) was adding 4.4% to $27.83; China North East Petroleum (NEP) was advancing 4.3% to $2.18; and PetroChina (PTR - Get Report) was rising 3.8% to $120.99.

-- 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.

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
COP $63.37 -0.71%
CRZO $48.83 -2.60%
CVX $103.09 -0.02%
GPOR $43.83 -3.00%
NEP $46.88 0.41%

Markets

DOW 18,087.95 -75.04 -0.41%
S&P 500 2,115.26 -8.22 -0.39%
NASDAQ 5,091.0130 -15.58 -0.31%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs