Published on Wednesday, 23 May 2012 17:13 Written by Todd Shriber
New York, May 23rd (TradersHuddle.com) – Increased supply, rising inventories and more concerns about Europe combined to thwart any chance of upside for crude on Wednesday. NYMEX-traded crude lost $2.14, or 2.3%, to settle at $89.71 per barrel. That’s the first settlement below $90 for the benchmark U.S. contract since early November. Oil and other commodities were once again plagued by a stronger U.S. dollar. The PowerShares DB US Dollar Index Bullish (NYSE: UUP) added 0.35% and is approaching its highest levels of 2012.
The U.S. Energy Department said oil stockpiles rose 883,000 barrels to 382.5 million barrels last week. That’s better than 1.65 million-barrel increase analysts expected, but it still leaves U.S. oil inventories at 22-year highs. Following weeks of rising inventories and troublesome global economic data, U.S. oil futures have tumbled 15% since the start of May.
Traders again glossed over a decent housing data point as the Commerce Department said new home sales 3.3% last month to a seasonally adjusted rate of 343,000 up from 332,000 in March. The median price was $235,700, a 0.7% increase from March.
Again, that sends the message that Europe is ruling the roost for global markets. A summit of European policymakers kicked off today, but it did little to assuage nervous investors that Greece’s departure from the Euro Zone could be a real mess and lead to more problems in the near-term.
Iran and the U.S., U.K., France, Russia, China and Germany are holding talks in Baghdad regarding Iran’s nuclear program and any progress on that front would pressure oil on the downside. Tensions with Iran, which prompted some to speculate crude supplies would be diminished, forced oil futures higher earlier this year. Saudi Arabia, OPEC’s largest producer, has made up for the short fall and has been pumping additional crude in recent months.
To their credit, U.S. stocks fought their way to a moderately higher finish after spending much of the session deep in the red. In fact, the Dow Jones Industrial Average was staring one of its worst days of the year square in the face, but finished with a loss of less than seven points. The late-day buying spree sent Exxon Mobil (NYSE: XOM) higher by 0.1%, but Chevron (NYSE: CVX) closed with a small loss.
In good news for the oil services group, Baker Hughes (NYSE: BHI) said he U.S. oil-directed rig count would have to double to more than 2,500 rigs if analyst estimates of a 2 million-barrel-per-day increase in U.S. oil production by 2017 are correct, Reuters reported. The news helped the Market Vectors Oil Services ETF (NYSE: OIH) to a gain of over 1.3% on volume that was nearly 50% higher than the daily average.
- Critical Alerts For Chevron, Coca Cola, JC Penney, Union Pacific, and US Bancorp Released By InvestorsObserver
- 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
- Baker Hughes Announces May 2013 Rig Counts
- 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
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
- TheStreet Ratings Top 10 Rating Changes - TheStreet.com
- Baker Hughes Inc. Stock Downgraded (BHI) - TheStreet.com
- Chevron Corp (CVX): Today's Featured Energy Laggard - TheStreet.com
- Baker Hughes Inc. Stock Buy Recommendation Reiterated (BHI) - TheStreet.com
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:15,289.93 Trade time:12:39PM EDT Value change:▼28.30 (-0.18%)
S&P 500Company ID [INDEXSP:.INX] Last trade:1,648.82 Trade time:12:39PM EDT Value change:▼2.99 (-0.18%)
NASDAQCompany ID [INDEXNASDAQ:.IXIC] Last trade:3,474.48 Trade time:12:39PM EDT Value change:▼7.70 (-0.22%)
In The Wires
Bushmills™ Irish Whiskey Is Toast Of World Leaders At G8 Summit In Northern Ireland
AudioEye Hires Chief Development Officer to Accelerate the Completion of AudioEye Voice Technology Platform
Harvest Natural Resources To Present At The Global Hunter Securities 100 Energy Conference
DIY Network's Interactive Home Building Series "Blog Cabin" Returns Monday, July 29 At 9:30 p.m. ET/PT
Joseph Adamo appointed General Manager of Transat Distribution Canada
Yale-New Haven neurosurgeons verifying effective eye tumor drug delivery localization with iMRI in VISIUS® Surgical Theatre
AT&T and NEC Introduce Ultra-Rugged Smartphone Designed for Hard Work, Real Life
Media Advisory - WestJet Encore to unveil its first Bombardier Q400