Oil Climbs Through $71 - TheStreet

Oil Climbs Through $71

Gasoline is fractionally higher at $2.25 a gallon.
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Oil futures were slightly higher Monday and pushed through $71 a barrel after traders weighed the potential ramifications of last week's attempted terror attacks in London and the car bombing in Glasgow.

After ducking into negative territory early in the day, August light sweet crude rebounded and rose 45 cents to $71.13 a barrel. Reformulated gasoline was fractionally higher at $2.25 a gallon, and heating oil tacked on 2 cents at $2.06 a gallon.

Natural gas came off its lows and was unchanged at $6.78 per million British thermal units.

Analysts and traders recalibrated their risk estimates after two terrorist bomb attempts in London were foiled on Friday and one at Glasgow's airport did little damage on Saturday. Although concerns about possible future attacks remain, the anxiety among traders appears to have been alleviated slightly.

"Prices were bid up quite a bit last Friday when the reports of potential car-bombs in London first made headlines," says Dennis Gartman, publisher of

The Gartman Letter

. "Since the attacks didn't really worsen over the weekend, fears of new terror attacks are winding down in today's session."

Meanwhile, unseasonably cool weather over the East Coast of the U.S. has drastically suppressed demand for electricity, and that was weighing on natural gas prices.

Elsewhere,

Valero

(VLO) - Get Report

said throughput at its McKee refinery in Sunray, Texas, is back above 150,000 barrels a day. The refinery was forced to shut down in February because of a fire, and the company has been working to get operations back online since then. The McKee refinery has a total production capacity of 170,000 barrels a day.

Most energy stocks were stronger. The

CBOE Oil Index

gained 0.8% to 767.22.

ConocoPhillips

(COP) - Get Report

advanced 2% to $80.07, and

Chevron

(CVX) - Get Report

climbed 0.4% to $84.57.

Exxon Mobil

(XOM) - Get Report

moved 0.9% higher to $84.59.