Ahead Of Big Weekend, Oil Inches Higher
Published on Friday, 15 June 2012 19:22 Written by Todd Shriber
With substantial headline risk looming this weekend, oil futures eked out a small gain on Friday as NYMEX-traded crude for July delivery added 4 cents to close $83.95 per barrel. In London, Brent for August delivery rose 26 cents to close at $97.43 per barrel. Oil’s gains despite the fact that economic data points released were again troubling.
In economic news, University of Michigan-Thomson Reuters consumer-sentiment index slid to an initial June reading of 74.1from 79.3 in May. The initial June reading was the lowest since December and well below the 77.8 economists were expecting. The New York Federal Reserves Empire Manufacturing Index fell to 2.3 this month, a 15-point drop from May and well below the reading of 13 economists expected.
On the other hand, it is weakness in the U.S. economy that is stoking speculation that the Federal Reserve might engage in more quantitative easing. Ahead of Sunday’s Greek elections, rumors have been swirling that global central banks are ready to act should the worst-case scenario play out. That is to say it appears as if traders want the anti-austerity party and Greece to depart the Eurozone just saw the markets get more QE.
Regarding oil, that may only lead to a near-term pop. The European Union accounts for about 17% of global oil demand, but on its own, Greece accounts for less than 1%. Then there is the issue of OPEC. The cartel is pumping 31.6 million barrels of crude per day, but it has a quota of 30 million barrels. Clearly, the 12 OPEC members need to stick to the quota to support oil prices, but there is no consensus about doing that.
As U.S. equities ran to their second consecutive weekly gain, oil stocks got a lift as well. Even Petrobras (NYSE: PBR), Brazil’s state-run oil company, closed higher, but it should be noted that the stock touched a new 52-week low earlier in today’s session.
On Thursday, Bloomberg published a piece entitled "Brazil’s Petrobras Worst Big Oil Bet on Deepwater Delays," which noted the stock "is the worst investment among the world’s biggest oil companies this year as Brazil’s state-controlled producer suffers delays and cost overruns developing the largest oil finds in more than a decade."
Exxon Mobil (NYSE: XOM) added more than 1% on the day while Chevron (NYSE: CVX) jumped 2.4%. On no specific headlines, shares of Chesapeake Energy (NYSE: CHK), the second-largest U.S. natural gas producer, surged 4.4%, coming to a dead stop at resistance at $18.10. That embattled stock has gained almost 29% in the past month.
- Southwestern Energy Announces Closing Of Acquisition Of Marcellus Shale Properties
- Is Chesapeake Energy Setting for a Break Out?
- Critical Alerts For Chevron, MGM Mirage, Charter Communications, Quanta Services, and Acadia Released By InvestorsObserver
- Exxon Is Near to the 50 and 200 Day Moving Averages
- Chesapeake Energy Is Near Resistance
- TradersHuddle Mid-day Update: Dow Jones Lower Top Performers: AXP, PG, WMT
- Is Exxon Breaking Out?
- Is Chesapeake Energy Breaking Out?
- Is Chesapeake Energy Setting up for a Break Out?
- Reference Points for Exxon
Related Partner Headlines
- Oil-Stock Rally Is an Opportunity to Sell - TheStreet.com
- Chesapeake Energy Corp (CHK): Today's Featured Basic Materials Laggard - TheStreet.com
- Petroleo Brasileiro SA Petrobras (PBR): Today's Featured Energy Laggard - 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
- Chesapeake Energy Corp Stock Hold Recommendation Reiterated (CHK) - TheStreet.com
- The Fiscal Cliff Brings Opportunities - 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:15,354.40 Trade time:4:40PM EDT Value change:▲121.18 (0.80%)
S&P 500Company ID [INDEXSP:.INX] Last trade:1,667.47 Trade time:4:39PM EDT Value change:▲17.00 (1.03%)
NASDAQCompany ID [INDEXNASDAQ:.IXIC] Last trade:3,498.97 Trade time:5:15PM EDT Value change:0.00 (0.00%)
In The Wires
Elsevier and Russian Ministry of Education and Science Announce 2013 Scopus Award Winners
Elsevier Announces Collaboration with The Geological Society of America To Add Over 60,000 Maps to Geofacets Research Tool
Perfect World Unveils New 3D Fantasy MMORPG "Holy King" in its Pipeline
Boeing Showcases BBJ 3 for the First Time at EBACE 2013
AUO Publishes 65-inch Full HD OLED Panel Technology Paper at SID Display Week
Final STRATO Clinical Study Data Demonstrates Potential for LCP-Tacro™ to Improve Tacrolimus-Induced Tremors
EBACE 2013: Honeywell Aerospace Highlights Momentum In Europe, Middle East For Aircraft Upgrades
ASE Assembly & Test (Shanghai) Limited to Acquire Shares of Wuxi Tongzhi Microelectronics Co., Ltd. from Toshiba Semiconductor (Wuxi) Co., Ltd.