Crude Oil Surges to $100 a barrel on Consumer Confidence Surprise (USO, UNG, UHN, ANR, SLB, NXY, DNR, GPOR, RIG, PDC, UDRL)

Published on Tuesday, 29 November 2011 14:01 Written by Paul Oldrini

New York, November 29th (TradersHuddle.com) - Crude oil continued to moved higher for the second consecutive session on Tuesday bolstered by sharp jump in American consumer confidence, which touched its highest  level since July. Investors also digested the completion of a bond auction by Italy, although the euro zone country paid high yields for it.

Crude was also getting support on reports that Iranian protesters continued with protests and entered buildings inside the British embassy compound in Tehran fling rocks, petrol bombs and burning documents looted from offices.

Investors would look for weekly oil inventory reports on U.S. supply, with the industry group American Petroleum Institute's report due at 4:30 p.m. EST after the market hours.

Italy sold 7.5 billion euros ($10 billion) in bonds, but required to pay yields that averaged well above 7%.

Euro-zone finance ministers would meet in Brussels Tuesday to finalize details of the enhanced European Financial Stability Facility.

Light, sweet crude for January delivery soared $1.38, or 1.41%, to $99.59 a barrel on the New York Mercantile Exchange, after reaching high of $100.09.

United States Oil Fund LP (ETF)  (NYSE:USO) surged 0.71 (1.88%) to $38.56. United States Heating Oil Fund, LP (NYSE:UHN) climbed 0.54 (1.60%) to $34.20. United States Natural Gas Fund, LP  (NYSE:UNG) also added 1.15%.

Alpha Natural Resources, Inc.  (NYSE:ANR) continued to move higher and added another 4% after rising over 7% in the previous trading session.

Schlumberger Limited.  (NYSE:SLB) climbed 2.51% to $70.70 after analyst at Jefferies started the coverage on the stock with a Buy rating.

Nexen Inc. (USA)  (NYSE:NXY) soared 6.10% to $15.67 following the company said that it divest a 40% stake in its Horn River, Cordova and Liard basins in northeast British Columbia to a consortium led by Japan’s Ipex Corp. for $700 million.

Denbury Resources Inc.  (NYSE:DNR) added 4.50% after analyst at Robinson Humphrey upgraded the stock to buy from neutral with a price target of $20.

However, Gulfport Energy Corporation  (NASDAQ:GPOR) slumped 5.75% after it announced a common stock offering of 5M shares in order to pay off corporate obligations and fund development expenses. Transocean LTD  (NYSE:RIG)   also slumped on public offering of 26 million shares to help the firm finance its acquisition of Aker Drilling ASA.

Some of North American land drillers companies came under pressure following Jefferies  downgraded the sector led by Pioneer Drilling Company  (AMEX:PDC) falling 5.11%, Union Drilling, Inc.  (NASDAQ:UDRL) slid 3.24%.