This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Oil Rises On Europe Plan, US Jobs Data

JOSHUA FREED

Oil prices rose above $97 per barrel on Thursday, but then gave up most of their gains in late trading.

The initial run-up in prices was driven by word that the European Central Bank will buy lots of government bonds, which should help lower borrowing costs for European countries struggling with debt expenses. Prices were also boosted by reports showing more private-sector hiring and fewer unemployment claims in the U.S.

Positive economic news tends to boost oil prices, because traders anticipate that stronger economies will need more oil.

Oil prices were also supported by a report from the Energy Information Administration that showed U.S. crude supplies dropped by more than analysts expected last week. Hurricane Isaac interrupted deliveries of oil imports and refinery activity along the Gulf Coast.

Benchmark U.S. crude reached as high as $97.71 per barrel on the New York Mercantile exchange. However, in late trading, enthusiasm cooled. Oil ended the day at $95.53, up just 17 cents. The price of Brent crude, priced in London rose 40 cents to end at $113.49.

Why the big price decline from intraday highs? The answer wasn't obvious, even to some analysts.

"I wonder if it's a case of buy on the rumor and sell on the news," said Michael Lynch, president of Strategic Energy & Economic Research.

Gasoline pump prices hovered around a national average $3.82 a gallon, according to AAA, Wright Express and oil Price Information Service.

â¿¿ Wholesale gasoline futures rose 4.12 cents to end at $2.9910 per gallon.

â¿¿ Heating oil rose 2.49 cents to finish at $3.1425 per gallon.

â¿¿ Natural gas fell 1.9 cents to end at $2.776 per 1,000 cubic feet.

The EIA report released Thursday showed that 28 billion square feet of natural gas went into storage last week. That was less than expected by analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos. But stocks are still 13.1 percent higher than they were a year ago.

Copyright 2011 Associated Press. 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 This material may not be published, broadcast, rewritten or redistributed.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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG

Markets

DOW 17,691.84 +13.61 0.08%
S&P 500 2,057.96 +1.81 0.09%
NASDAQ 4,877.0910 +13.7290 0.28%

Partners Compare Online Brokers

Free Reports

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