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 Falls Below $95 On Choppy Growth Outlook

By PABLO GORONDI

The price of oil rose to near $96 a barrel on Friday ahead of the release of Conference Board's index of leading indicators for the U.S. economy.

By early afternoon in Europe, benchmark oil for June delivery was up 45 cents to $95.61 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 86 cents on Thursday.

The Conference Board's index attempts to gauge what's coming over the next several months â¿¿ investors will watch it for clues about the strength of the recovery in the world's largest economy.

Analysts, however, say the upward momentum in oil prices may be limited amid signs that the U.S. and European economies still face considerable challenges.

Applications for U.S. unemployment aid rose last week by 32,000 to a seasonally adjusted 360,000, the highest in six weeks, the Labor Department said this week. A report on housing was neutral, while manufacturing in the mid-Atlantic region fell.

That data came on top of confirmation that the 17-nation euro region remained in recession after contracting for a sixth-straight quarter in the January-March period.

"Several forces should keep the region in recession, including continued fiscal austerity, poor credit conditions in peripheral economies and weak external demand," analysts at Capital Economics said in a market commentary.

"The U.S. is the only major advanced economy to have achieved steady growth since 2009. The latest data have been mixed, but the fundamentals look strong enough to sustain a solid, if unspectacular, recovery."

Oil prices are likely to be limited also by a stronger dollar, which makes crude more expensive for traders using other currencies, and reports showing U.S. stockpiles of crude are near all-time highs.

"It is questionable whether the oil prices will be able to defy a stronger U.S. dollar for any length of time in view of the oversupplied market," said a report from analysts at Commerzbank in Frankfurt. "It is estimated that OPEC is producing approximately 1 million barrels of crude oil per day more than is needed at present."

1 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
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

Markets

DOW 18,162.99 +121.45 0.67%
S&P 500 2,123.48 +19.28 0.92%
NASDAQ 5,106.5930 +73.8420 1.47%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs