Oil Falls Again
Published on Tuesday, 28 February 2012 17:53 Written by Todd Shriber
New York, February 28th (TradersHuddle.com) – Oil’s losing streak now stands at two days as demand erosion concerns on the back of high prices prompted more selling in the oil pits today though some traders believe Tuesday’s downdraft for oil was nothing more than some profit-taking. Either way, NYMEX-traded crude for April deliver fell $2.01 to close at $106.55 a barrel. In London, Brent for April deliver dropped $2.62 to finish the day at $121.55 a barrel. The contracts are on pace for February gains of 8% and 9%, respectively.
Today, OPEC member Iran, which has been roiling the oil market with threats to cut off supply to Europe said it will keep discussing its nuclear program with the U.N.'s International Atomic Energy Agency. Drivers are now paying an average of $3.72 a gallon nationwide after gas prices increased for a 21st consecutive day on Tuesday, the Associated Press reported. Alaska, California, New York, Connecticut and Hawaii have the highest gas prices in the U.S.
Despite the Dow Jones Industrial Average closing above 13,000 for the first time in almost four years, Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX) both closed fractionally lower on the day. BP (NYSE: BP), Europe’s second-largest oil company, closed higher after the company announced it will sell its Kansas natural gas assets to Linn Energy (NASDAQ: LINE) for $1.2 billion.
The deal is part of BP’s previously announced asset sales program to raise cash for expenses related to the Gulf of Mexico oil spill. The assets include all of BP’s interests in 2,400 natural gas wells in the Hugoton Field, in southwest Kansas, according to the Wall Street Journal.
In other BP news, the company is looking to settle with spill plaintiffs using $14 billion from the Gulf Coast Claims Facility, which was used to compensate business owners who lost money immediately following the worst oil spill in U.S. history. A settlement, while advantageous for BP, would undoubtedly be complex and the Justice Department has signaled it’s prepared to go to trial against the British oil giant.
BP rival Royal Dutch Shell (NYSE: RDS-A), Europe’s largest oil company, finished higher on the day despite news the company could see a competing bid from Indian suitors to its $1.6 billion for Cove Energy. Shell announced the takeover, aimed at bolstering the company’s production of liquefied natural gas, last week. A Thai company has already offered $1.8 billion for Cove.
As measured by the Market Vectors Oil Services ETF (NYSE: OIH) and the SPDR S&P Oil & Gas Equipment & Services ETF (NYSE: XES), oil services issues were mostly negative on the day. Both funds are up over 13% year-to-date.
- Is Exxon Breaking Out?
- Trading Idea: Momentum Building in Exxon
- Trading Idea: Is Exxon Breaking Out?
- Exxon Is Close to its 50 and 200 Day Moving Averages
- Top Performing Dow Component: Home Depot
- Exxon Is in a Well Defined Range
- Trading Idea: What to Expect as Exxon Breaks Resistance
- TradersHuddle Mid-day Update: Dow Jones Lower Top Performers: INTC, T, MRK
- Above Resistance: Exxon
- Entry points for Exxon
Related Partner Headlines
- Oil-Stock Rally Is an Opportunity to Sell - TheStreet.com
- Chevron Corp Stock Buy Recommendation Reiterated (CVX) - TheStreet.com
- Dow Today: Chevron (CVX) Lower - TheStreet.com
- Oppenheimer Holdings Reiterates Outperform Rating, $130 PT on Chevron Corporation - Benzinga
- Dow Component Chevron (CVX) To Go Ex-dividend Tomorrow - TheStreet.com
- Chevron Stock To Go Ex-dividend Tomorrow (CVX) - TheStreet.com
- Chevron Corp (CVX): Today's Featured Energy Laggard - TheStreet.com
- Exxon Mobil Stock To Go Ex-dividend Tomorrow (XOM) - TheStreet.com
- Energy Sector Recap: Exxon Mobile Reports Decline In Production (XOM, EOG, UPL, KOG, CHK) - Investopedia
- Exxon Mobil Corporation (XOM): Today's Featured Energy Laggard - TheStreet.com
Recent Trading Ideas
Latest Partner Headlines
Dow Today: Verizon Communications (VZ) Higher - TheStreet.com
Separating the Bargains From the Busts - TheStreet.com
Cramer Quick Take: The 60-Inch TV Will Be Key This Holiday - TheStreet.com
Cramer Quick Take: Cisco Wins If Fiscal Cliff Is Resolved - TheStreet.com
Gap Up and Sit - TheStreet.com
Apple, Intel, MicroStrategy: Tech Winners & Losers - TheStreet.com
Windows 8 PC Sales Disappointing: Report - TheStreet.com
Cramer Quick Take: Buy Home Depot and Lowe's - TheStreet.com
Dow JonesCompany ID [INDEXDJX:.DJI] Last trade:15,318.23 Trade time:4:34PM EDT Value change:▲138.38 (0.91%)
S&P 500Company ID [INDEXSP:.INX] Last trade:1,651.81 Trade time:4:34PM EDT Value change:▲12.77 (0.78%)
NASDAQCompany ID [INDEXNASDAQ:.IXIC] Last trade:3,482.18 Trade time:5:15PM EDT Value change:▲30.05 (0.87%)
In The Wires
Veris Gold Corp. elects nine-member board
Intercept Pharmaceuticals Announces Pricing of Public Offering of Common Stock
Valeant Pharmaceuticals Prices Public Offering Of Common Shares
Ellington Residential Mortgage REIT Announces Dividend for the Second Quarter of 2013 and Provides Portfolio Update
72nd Common Stock Monthly Dividend Increase Declared By Realty Income
Realty Income Declares Preferred Stock Monthly Dividends
Northrop Grumman Delivers First AQS-24A Airborne Mine-hunting Vehicle to Japan
Lifshitz Law Firm Announces Investigation of Cooper Tire & Rubber Co., Dole Food Company, Inc., Erickson Air-Crane, Inc. and Uni-Pixel, Inc.