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

$100 Oil No Cause for Panic

"We expect a highly volatile market over at least the next six months with the European debt crisis continuing and further effects from Chinese monetary tightening."

The much talked about potential, longer-term decline of the U.S. dollar, which would help drive oil prices higher, is also a factor that WeatherBELL Analytics' energy analyst Alan Lammey is paying close attention to.

Ultimately, "both gasoline and heating oil prices remain at the mercy of the economic environment," Smith of Summit Energy summed up.

"Should the U.S. economy improve, crude prices will rise, and hence so will gasoline and heating oil," he said. "However, if we see further deterioration in the European debt crisis, there will be a negative ripple effect on the US economy, and product prices will likely fall."

The much-anticipated break of oil prices above $100 a barrel kicked in Wednesday on news that Enbridge (ENB) and Enterprise Products Partners (EPD) have agreed to open a crucial US oil artery by mid-2012.

The move to reverse the Seaway pipeline by the end of the second quarter of 2012 will allow U.S. oil to flow more easily from the country's major storage hub in Cushing, Okla. to Gulf Coast refiners. As a result, WTI prices will more accurately reflect global market price conditions and are soon expected to trade more closely with Louisiana Light Sweet Crude, which has for months been trading at the same or even higher prices than Brent.

Energy stocks were mostly falling Thursday. BP (BP - Get Report) was falling 0.8% to $43.17; Apache (APA - Get Report) was down 0.4% to $102.30; EOG Resources (EOG - Get Report) was lower by 0.3% to $100.41; Chesapeake Energy (CHK - Get Report) was behind by 0.6% to $25.32; Triangle Petroleum (TPLM - Get Report) was higher by 1.1% to $6.27; Southern Union (SUG) was flat at $41.95; and Anadarko Petroleum (APC - Get Report) was down 0.4% at $78.63.

-- Written by Andrea Tse in New York.

>To contact the writer of this article, click here: Andrea Tse.
Copyright 2011 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
2 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
APC $61.14 -1.40%
APA $50.36 -1.10%
BP $34.98 -0.03%
CHK $5.41 -1.50%
EOG $83.52 -1.90%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.93 -0.21 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs