Oil drops to near $102 ahead of Iran nuclear talks

Chicago, IL 4/9/12 (StreetBeat) -- Oil prices fell to near $102 a barrel Monday in Asia amid hopes international talks this week may help avoid military action over Iran's nuclear program.

Benchmark oil for May delivery was down $1.30 to $102.01 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract added $1.84 to settle at $103.31 in New York on Thursday. The global oil market was closed Friday for the Good Friday holiday.

Brent crude for May delivery was down 97 cents at $122.46 per barrel in London.

On Sunday, Iran state television said negotiations with the U.S., China, Russia, France, Britain and Germany over the country's nuclear program are scheduled to begin Friday in Istanbul. Fears that an attack on Iran's nuclear facilities by Israel or the U.S. would disrupt global crude supplies have helped push oil prices up from $75 in October.

Crude has fallen from $110 last month amid signs of weak consumer demand in the U.S., the world's biggest oil consumer. Crude inventories have jumped more than expected the last two weeks, and the U.S. government said Friday that the economy added 120,000 jobs in March, fewer than analysts expected.

"A down trend across the energy market could extend across this entire quarter," energy trader and consultant Ritterbusch and Associates said in a report.

Investors will be closely watching the beginning of first quarter corporate earnings results for clues about the strength of the U.S. economy. Aluminum maker Alcoa, tech giant Google and J.P. Morgan bank are scheduled to report this week.

In other energy trading, heating oil was down 1.6 cents at $3.15 per gallon and gasoline futures slid 2.6 cents to $3.31 per gallon. Natural gas fell 1.5 cents to $2.07 per 1,000 cubic feet.

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Oil Near $107 After Mixed US Demand

Tomahawk, WI 2/29/2012 (StreetBeat) – Oil prices rose slightly to near $107 a barrel on Wednesday, steadying after a large drop the day before, amid mixed signs about the strength of U.S. crude demand.

By early afternoon in Europe, benchmark oil for April delivery was up 34 cents to $106.89 in electronic trading on the New York Mercantile Exchange. The contract fell by $2.01 to $106.55 per barrel in New York on Tuesday.

In London, Brent crude was up 97 cents to $122.52 per barrel on the ICE Futures exchange.

U.S. crude and oil product inventories were mixed last week. The American Petroleum Institute said late Tuesday that crude inventories rose 521,000 barrels while analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had predicted an increase of 1 million barrels.

Inventories of gasoline fell 916,000 barrels last week while distillates dropped 3.3 million barrels, the API said.

The Energy Department's Energy Information Administration reports its weekly supply data later Wednesday.

Meanwhile, an improvement in U.S. consumer sentiment helped bolster oil prices. The Conference Board, a private business research group, said Tuesday that consumer confidence rose to a one-year high in February. However, the government said orders for durable goods in the U.S. in January had the biggest fall in three years.

Crude has jumped from $96 earlier this month amid growing tension over Iran's nuclear program. Investors will be closely watching the latest data on U.S gross domestic product and industrial production due to be released later Wednesday.
Oil prices were also supported by news that the European Central Bank had made euro529.5 billion ($712.4 billion) in low-interest loans to banks, a new step meant to alleviate the continent's debt crisis.

"Investors' focus remains on the eurozone's economic stability, while concerns eased after the confirmation from the ECB of further monetary easing," said a report from Sucden Financial in London.

In other energy trading, heating oil rose 2.01 cents to $3.2402 per gallon and gasoline futures gained 1.98 cents to $3.2445 per gallon. Natural gas added 1.1 cents to $2.53 per 1,000 cubic feet.

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Oil Prices Fall Below $98 a Barrel on Europe Debt Concerns

Swan Lake, MS 11/29/2011 (StreetBeat) – Oil prices fell below $98 a barrel Tuesday in Asia as European leaders raced to contain the continent's debt crisis and keep the euro currency block intact.

Benchmark crude for January delivery was down 47 cents to $97.74 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $1.44 to settle at $98.21 on Monday.

In London, Brent crude was down 32 cents at $108.68 on the ICE futures exchange.

Crude has zigzagged near $100 for the last two weeks as traders speculate whether Europe's debt crisis will break apart the 17-nation euro currency zone. European leaders are scrambling to keep contagion from spreading, and the more creditworthy nations such as Germany are considering large bond buys from the most indebted countries, such as Greece and Italy.

"The on-again, off-again resolutions to the debt situation in the U.S. and Europe, in relation to oil prices, are dizzying," energy consultant and trader The Schork Group said in a report. "For the time being in the oil market, fundamentally driven headlines matter less and faux promises from American and European technocrats matter more."

Crude jumped above $100 before settling lower Monday on news U.S. shoppers spent nearly $1 billion more on Black Friday — the day after Thanksgiving and the traditional start of the Christmas shopping season — than they did a year ago.

In other Nymex trading, natural gas added 2.7 cents to $3.55 per 1,000 cubic feet. Heating oil rose 0.8 cent to $2.99 a gallon and gasoline slid 0.4 cent to $2.51 a gallon.

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Oil Prices Rise Above $99 a Barrel in Asia

Swan Lake, MS 11/28/2011 (StreetBeat) – Oil prices rose above $99 a barrel Monday in Asia, taking a cue from gains in stock markets after a strong start to the U.S. holiday shopping season.

Benchmark crude for January delivery was up $2.49 to $99.30 a barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract rose 60 cents to settle at $96.77 on Friday.

In London, Brent crude was up $2.13 at $107.99 on the ICE futures exchange.

Oil took its cue from Asian and European stocks, which were mostly higher Monday after record 226 million shoppers visited stores and websites during the four-day U.S. holiday weekend starting on Thanksgiving Day. That was up from 212 million last year, according to early estimates by The National Retail Federation.

Reports that France and Germany might circumvent European bureaucracy to get nations using the euro common currency to comply with strict rules for budget discipline also boosted sentiment.

Crude has fallen from above $103 more than a week ago amid investor concern that Europe's debt crisis will undermine global economic growth and oil demand.

In other Nymex trading, natural gas was up 0.3 cent at $3.545 per 1,000 cubic feet. Heating oil added 4.8 cents to $2.99 a gallon and gasoline rose 6.6 cents to $2.52 a gallon.

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Oil Prices Drop on European Debt Worries

Swan Lake, MS 11/16/2011 (PennyPayDay) – Oil prices were lower on Wednesday following a broad sell-off on Wall Street that was stoked by fears that Europe would be overwhelmed by a mountain of debt.

Here's how energy contracts traded:

On the New York Mercantile Exchange:

Crude fell $1.06 to end the day at $95.74 per barrel.

Gasoline lost 6.22 cents to finish at $2.6442 per gallon.

Heating oil fell 1.75 cents to end at $3.0986 per gallon.

Natural gas fell 9.3 cents to finish at $3.652 per 1,000 cubic feet.

On the ICE Futures exchange in London:

Brent crude lost $2.69 to end the day at $112.31 per barrel.

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Oil Trades Near a Three-Month High

Tomahawk, WI 11/8/2011 (StreetBeat) – Oil rose to the highest price in more than three months in New York on signs of shrinking stockpiles in the U.S. and amid speculation European leaders will make progress in containing the region’s debt crisis.

Futures advanced for a fifth day, gaining as much as 1.1 percent. Crude supplies at Cushing, Oklahoma, fell 4.4 percent in the first three days of the month, data from DigitalGlobe Inc. showed. Prices also gained amid speculation Iran’s nuclear plans may threaten Middle East stability. Greek Prime Minister George Papandreou will resume talks today on forming a government, while Italy’s Silvio Berlusconi faces a vote that will determine if he has the support to stay in power.

“Italy is too big to save, and too big to fail, so whatever happens there will have an impact on sentiment across the board,” said Ole Hansen, senior manager of trading advisory at Saxo Bank A/S in Copenhagen. “Until we have additional news out of Italy on the economic side, it seems technically driven, and also with worries on the supply side.”

Crude for December delivery on the New York Mercantile Exchange rose as much as $1.08 to $96.60 a barrel, the highest price since Aug. 1, and was at $96.14 at 10:21 a.m. London time. Yesterday, the contract advanced $1.26, or 1.3 percent, to $95.52, the highest settlement since July 29. Prices have gained 5.2 percent this year.

Brent oil for December settlement on the London-based ICE Futures Europe exchange was up $1.11 at $115.67 a barrel. The premium of the European contract to New York crude was at $19.53 a barrel, after widening 7.5 percent yesterday, the most since Sept. 30. The spread settled at a record-high $27.88 on Oct. 14.

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Oil Rises to Three-Month High After Greece Cancels Referendum

Tomahawk, WI 11/4/2011 (StreetBeat) – Oil rose its highest in three months in New York as signs that Europe will reach an agreement with Greece on a rescue plan reduced concern economic growth will falter and damp fuel demand.

Futures rose as much as 0.9 percent and are poised for a fifth weekly gain, the longest rising streak since April 2009. Greece won’t hold a public vote on a bailout package, Finance Minister Evangelos Venizelos told lawmakers in Athens yesterday. Oil is approaching its 200-day moving average, which is at $94.84 a barrel today, according to data compiled by Bloomberg.

“The euro zone is the risk factor for the oil price,” said Sintje Boie, an analyst at HSH Nordbank in Hamburg, who predicts the price of Brent crude will slide to $105 by year- end. “The uncertainty is high but we don’t expect it will end in a catastrophe. Oil demand is not so bad in the U.S., and growth in Asia is strong.”

Crude for December delivery rose as much as 86 cents to $94.93 a barrel, the highest price since August 2, in electronic trading on the New York Mercantile Exchange. The contract was at $94.77 at 10:57 a.m. London time. Futures are up 1.6 percent this week and 3.7 percent in 2011.

Brent oil for December settlement on the London-based ICE Futures Europe exchange was up $1.07 at $111.90 a barrel. The premium of Brent to New York crude was at $17.13, down from a record-high settlement of $27.88 on Oct. 14.

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Oil Price Falls on Europe Worries

Tomahawk, WI 11/1/2011 (StreetBeat) – Oil is falling with the stock market as a surprise referendum in Greece threatens to derail a plan to bolster Europe's banks.

Benchmark crude on Tuesday morning fell $2.26, or 2.4 percent, to $90.94 per barrel in New York, while Brent crude lost $2.40 to $107.16 in London.

Prices dropped after Greece's prime minister called a referendum in his country on Europe's debt deal. If Greeks reject the debt deal, it would increase the chances the country would default on its debt. That would weaken banks in surrounding countries and slow down the European economy.

Stocks sold off, with the major indexes down more than 1.5 percent.

Meanwhile, U.S. retail gasoline prices fell less than a penny to a national average of $3.437 per gallon.

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Oil Down Again Today on China News

Tomahawk, WI 10/18/2011 (PennyPayDay) – Oil fell for a second day in New York after China said its economy grew at the slowest pace in two years and U.S. crude stockpiles were forecast to increase.

Futures dropped as much as 0.5 percent, extending yesterday’s 0.5 percent decline, after China’s statistics bureau said the economy grew at 9.1 percent in the third quarter, less than predicted. An Energy Department report tomorrow may show U.S. crude inventories climbed for a second week, according to a Bloomberg News survey. Technical indicators indicate prices may have advanced too fast to be sustainable.

“The number from China is getting a bit worse than before,” said Ken Hasegawa, an energy trading manager at broker Newedge Group in Tokyo, who forecasts prices will decline $5 a barrel. “If the recovery of the economies in Europe and the U.S. is getting worse, then the economies of China and Asia will show some damage.”

Crude for November delivery fell as much as 40 cents to $85.98 a barrel in electronic trading on the New York Mercantile Exchange. It was at $86.10 at 2:45 p.m. Singapore time. Yesterday, the contract lost 42 cents to $86.38, the lowest settlement since Oct. 13. Prices are down 5.8 percent this year.

Brent oil for December settlement on the London-based ICE Futures Europe exchange dropped as much as 45 cents, or 0.4 percent, to $109.71 a barrel. The European benchmark contract was at a premium of $24 to U.S. futures. The difference narrowed 16 percent yesterday, the most since June 16.

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Oil Rises Above $85 per Barrel

Tomahawk, WI 10/14/2011 (PennyPayDay) – Oil prices rose above $85 a barrel Friday as investors hoped Europe was moving toward a solution to its debt crisis and looked to a slew of U.S. economic indicators due later in the day for signs of strength in the world's largest economy.

By early afternoon in Europe, benchmark crude for November delivery was up $1.10 at $85.33 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.34 to settle at $84.23 in New York on Thursday.

In London, Brent crude was up $1.48 at $112.59 a barrel on the ICE Futures exchange.

Crude has wandered in the mid-$80s most of this week after jumping from $75 last week, when optimism grew that Europe will soon unveil a plan to contain its debt crisis. Traders will be closely watching the latest data about U.S. retail sales, consumer sentiment and business inventories scheduled to be released later Friday for clues about crude demand.

Developments in the European debt crisis are seen as a key factor driving oil prices.

On Thursday, "Slovakia became the last country of the 17-member eurozone to ratify current plans to reinforce" the bailout fund," said analysts at JBC Energy in Vienna, calling it "a confidence-bolstering measure which should have supported crude prices."

Finance leaders from the world's leading economies, the Group of 20, will be meeting Friday and Saturday in Paris. On the agenda are the European debt crisis and ways to spark global economic growth.

News this week has been mostly negative for the oil market. On Thursday, the U.S. Energy Department said that oil and natural gas supplies grew unexpectedly last week, suggesting demand remains sluggish. Earlier this week the International Energy Agency, the Organization of Petroleum Exporting Countries and the U.S. Energy Information Administration all dropped forecasts for oil demand in 2012, assuming a slowdown in global economic growth.

"We are now in the Great Cessation," said a report U.S. energy consultancy Cameron Hanover. "It is not a recession and it is not a recovery. It is a realization that the economy is treading water."

In other Nymex trading, heating oil rose 4.79 cents at $3.0193 per gallon and gasoline futures gained 2.9 cents to $2.7865 per gallon. Natural gas advanced 1.6 cents to $3.547 per 1,000 cubic feet.

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Oil Slips to Near $84 per Barrel

Tomahawk, WI 10/13/2011 (PennyPayDay) – Oil prices fell to near $84 a barrel Thursday due to retreating equity markets, slower export growth in China and lowered forecasts for global demand for crude.

By early afternoon in Europe, benchmark crude for November delivery was down $1.23 to $84.34 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 24 cents to settle at $85.57 in New York on Wednesday.

In London, Brent crude was down $1.04 to $110.32 a barrel on the ICE Futures exchange.

The pace of growth of China's exports, while still impressive, fell sharply in September, a setback for hopes Chinese demand will help prop up the struggling global economy. Import growth also fell as China's domestic demand has weakened following repeated interest rate hikes and investment curbs.

"Crude oil imports in China have been very steady rather than surging this year," said analyst Olivier Jakob of Petromatrix in Switzerland. "It is very hard to blame the Chinese this year for the gasoline prices paid at the pump in New York."

In September, Chinese crude oil imports were 200,000 barrels a day higher than during the same month last year, but were 100,000 barrels a day lower in the third quarter of 2011 than in the third quarter of 2010, Jakob noted.

The narrowing Chinese trade surplus also depressed European stock exchanges, often considered by commodities traders as a barometer of market sentiment. Germany's DAX index was down 1.2 percent on Thursday, while the FTSE 100 in London lost 0.8 percent.

On Wednesday, the International Energy Agency followed OPEC in trimming its forecasts for crude oil demand this year and 2012. The Paris-based IEA still expects world demand to hit a record this year, but more slowly than previously expected. The IEA's outlook followed a similar one from the Organization of Petroleum Exporting Countries on Tuesday.

In the U.S., MasterCard SpendingPulse reported Wednesday that drivers bought less gas for the 29th week in a row. Gas consumption last week was down about 2 percent from the same period last year, according to SpendingPulse.

The fall in the oil price was limited by a report that showed U.S. crude supplies dropped more than expected last week, suggesting demand may be improving.

The American Petroleum Institute said late Wednesday that crude inventories fell 3.8 million barrels last week while analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had predicted a drop of 300,000 barrels.

Inventories of gasoline dropped 1.2 million barrels last week while distillates slid 3.1 million barrels, the API said.

The Energy Department's Energy Information Administration reports its weekly supply data later Thursday.

"The API came out with a fairly bullish report," energy trader and consultant The Schork Group said in a report. "Crude between $85 and $95 is reasonable in the coming months."

Gains by the dollar against the euro also weighed on oil prices by making crude more expensive for non-dollar investors. The euro slipped to $1.3727 on Thursday from $1.3793 late Wednesday in New York.

In other Nymex trading, heating oil lost 0.41 cent to $2.9306 per gallon and gasoline futures fell 2.24 cents to $2.7263 per gallon. Natural gas slipped 1 cent to $3.479 per 1,000 cubic feet.

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Oil Rises to Above $86 a Barrel

Tomahawk, WI 10/12/2011 (PennyPayDay) – Oil prices inched up above $86 a barrel Wednesday, supported by a weaker dollar even as concerns persisted about the sovereign debt crisis in Europe and the International Energy Agency slightly lowered its demand growth forecasts.

By early afternoon in Europe, benchmark crude for November delivery was up 70 cents at $86.51 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 40 cents to settle at $85.81 in New York on Tuesday.

In London, Brent crude was up $1.23 to $111.96 a barrel on the ICE Futures exchange.

The euro gained on the dollar after the release of fresh data showing that industrial production in the 17 countries using the common European currency rose unexpectedly in August, easing concerns that the region was heading back into recession in the third quarter.

A weaker dollar tends to lift the price of commodities such as oil by making it cheaper for investors holding other currencies.

The euro was up to $1.3806 from $1.3669 late Monday in New York, while the dollar weakened to 76.58 yen from 76.66 yen.

The Paris-based IEA said it was now expecting global demand to rise to 89.2 million barrels a day this year -- 1 million barrels more than in 2010 -- and to 90.5 million barrels a day in 2012. Compared with last month's forecasts, these revisions were lower by 50,000 barrels a day for 2011 and by 210,000 barrels a day for 2012.

"This month, our supply-demand balance for 2012 remains largely unchanged, with markets being swayed by both economic news from the eurozone and reports of recovering Libyan oil supply," said the IEA's monthly oil market report. "Both factors remain highly uncertain, but will shape market dynamics over the next 18 months."

Markets also awaited corporate earnings reports that could shape views on the strength of the U.S. economy and likely demand for crude.

Alcoa Inc., the largest U.S. aluminum producer, reported third-quarter net income that fell far short of analyst forecasts. The company said demand from Europe dropped sharply in the July-September period, which helped pull down the price of aluminum.

Alcoa is the first company in the Dow Jones industrial average to report third-quarter results. Later this week, food and beverage producer PepsiCo Inc., investment bank JPMorgan Chase & Co., and tech giant Google Inc. are also scheduled to announce earnings.

Investors will be closely watching to what extent a slowing global economy may have undermined corporate profits and what companies forecast for coming quarters. Analysts expect earnings from S&P 500 companies to rise about 12 percent from the same period last year, according to data provider FactSet.

Oil prices fell from $90 last month to $75 last week amid investor concern Europe's debt crisis could spread and hurt global economic growth. Crude bounced back to $85 this week and has hovered near there for the last couple days as traders await more details about a plan led by Germany and France to capitalize the region's banks.

"From a longer term perspective, we still see a choppy, wide swinging trade that still includes the possibility of a retest of last week's lows," energy consultant Ritterbusch and Associates said.

Investors will also be monitoring fresh information on U.S. stockpiles of crude and refined products.

Data for the week ending Oct. 7 is expected to show a draw of 300,000 barrels in crude oil stocks and a build of 100,000 barrels in gasoline stocks, according to a survey of analysts by Platts, the energy information arm of McGraw-Hill Cos.

The American Petroleum Institute will release its report on oil stocks later Tuesday, while the report from the Energy Department's Energy Information Administration -- the market benchmark -- will be out on Wednesday.

In other Nymex trading, heating oil rose 1.17 cents to $2.9158 per gallon and gasoline futures gained 1.2 cents to $2.7596 per gallon. Natural gas advanced 0.1 cent to $3.617 per 1,000 cubic feet.

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Oil Prices Above $84 a Barrel

Shawshank, VA 10/10/2011 (PennyPayDay) – Oil prices climbed above $84 a barrel Monday after better than expected U.S. jobs data and a vow from European leaders to support the region's bank sector hampered by the sovereign debt crisis.

By early afternoon in Europe, benchmark crude for November delivery was up $1.42 at $84.40 a barrel in electronic trading on the New York Mercantile Exchange. The contract climbed 39 cents to settle at $82.98 in New York on Friday.

In London, Brent crude was up $1.02 to $106.90 a barrel on the ICE Futures exchange.

The Labor Department said Friday that the U.S. economy added 103,000 jobs last month, more than economists had forecast. Analysts have been concerned in recent months that a sluggish job market could portend a recession in the second half.

A debt crisis in Europe and its possible impact on global economic growth has undermined investor confidence, sending crude to a 12-month low last week at $75.

But prices have bounced back amid hopes European Union leaders will soon implement a major recapitalization of the region's banks to safeguard them against a possible default by some member states such as Greece.

German Chancellor Angela Merkel said Sunday that she and French President Nicolas Sarkozy "are determined to do the necessary to ensure the recapitalization of Europe's banks."

Merkel spoke after talks with Sarkozy at Berlin's chancellery aimed at forging an agreement ahead of a summit of the European Union's 27 leaders later this month.

Despite the seemingly positive news from the U.S. and Europe, analysts said another factor may have been behind Monday's bullish moves in crude prices.

"We do not regard these two factors as either appropriate or sufficient to justify a sustained price recovery and attribute the upward movement more to a countermovement following the severe losses of recent weeks," said a report from Commerzbank in Frankfurt. "Some financial investors are likely to have regarded the lower price level as an opportunity to build up positions."

In other Nymex trading, heating oil was up 1.39 cents to $2.8727 per gallon and gasoline futures added 3.08 cents to $2.6784 per gallon. Natural gas shed 1.5 cents to $3.466 per 1,000 cubic feet.

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Oil Drops to Near $82 per Barrel

Tomahawk, VA 10/7/2011 (PennyPayDay) – Oil slipped closer to $82 a barrel Friday after a jump in weekly U.S. jobless claims stoked fears of another dour monthly employment report.

By early afternoon in Europe, benchmark crude was down 51 cents at $82.08 a barrel in electronic trading on the New York Mercantile Exchange. The contract jumped $2.91, or 3.7 percent, to finish at $82.59 per barrel in New York on Thursday.

In London, Brent crude was down 74 cents at $104.99 a barrel on the ICE Futures exchange.

Oil plummeted to 12-month lows earlier in the week but rebounded as European officials appeared to be ready to take more concerted action to contain the region's debt crisis.

Oil's rebound was eventually capped by a weekly jobs claims report in the U.S. that showed unemployment benefit applications rising 6,000 to 401,000

That figure suggests the closely watched report on U.S. monthly hiring due later Friday will show employers are still reluctant to add new employees. High unemployment in the U.S. has depressed consumer spending and demand for fuel.

"If the gain in non-farm payrolls prove disappointing, concerns about demand could soon predominate once more, bringing oil prices under pressure," said a report from Commerzbank in Frankfurt.

In other Nymex trading, heating oil fell 1.58 cents to $2.8453 per gallon and gasoline futures fell 2.3 cents to $2.6630 per gallon. Natural gas shed 3.9 cents to $3.559 per 1,000 cubic feet.

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Oil Near $81 per Barrel

Tomahawk, WI 10/6/2011 (PennyPayDay) – Oil prices rose above $80 a barrel Thursday, continuing a rebound from 12-month lows on signs that European finance officials are moving to bolster the region's banks.

By early afternoon in Europe, benchmark crude was up $1.17 to $80.85 a barrel in electronic trading on the New York Mercantile Exchange. The contract jumped $4.01, or 5.3 percent, to finish at $79.68 per barrel in New York on Wednesday.

In London, Brent crude was up 63 cents to $103.38 on the ICE Futures exchange.

Earlier in the week, oil dropped to the lowest level since September 2010 as Europe's financial crisis dragged on.

Experts are concerned that if heavily indebted Greece fails to pay its bills, it will spark a financial meltdown similar to the U.S. banking crisis of 2008.

But those fears eased after reports that the International Monetary Fund was pressing European leaders to quickly reinforce banks against worsening market panic.

Sentiment was further boosted after German Chancellor Angela Merkel said she would support a Europe-wide plan to recapitalize banks, if it was deemed necessary.

Stronger equity markets in Asia and Europe also helped lift crude prices, with investors often considering equities as a barometer of economic sentiment.

Hong Kong's Hang Seng index gained 5.7 percent Thursday, while London's FTSE 100 and Germany's DAX were both up around 2.2 percent.

Oil prices also were supported by Wednesday's release of data on U.S. stockpiles by the Energy Department's Energy Information Administration. Draws of 4.7 million barrels in crude stocks and of 1.1 million barrels of gasoline stocks contradicted analysts' expectations. But they said the positive effects of the stockpile data would likely be short-lived.

"In view of the prevailing threats to the economy, it is unlikely that the drop in inventories ... will have any lasting impact on oil prices," said a report from Commerzbank in Frankfurt. "Once concern about the economy gains the upper hand again, oil should come under renewed pressure."

In other Nymex energy trading, heating oil was up 1.65 cents at $2.7931 a gallon, and gasoline futures rose 2.56 cents to $2.5948 per gallon. Natural gas lost 1.4 cents to $3.556 per 1,000 cubic feet.

Pamela Sampson in Bangkok contributed to this report.

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Oil Down to Near $76 a Barrel

Oxford, MS 10/4/2011 (PennyPayDay) – Oil fell to near $76 a barrel Tuesday in Asia as fears intensified that Greece may not be able to crawl out from beneath a mountain of debt without defaulting.

Benchmark crude for November delivery was down $1.54 to $76.08 per barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange -- its lowest since late September 2010. Benchmark crude fell $1.59, or 2 percent, to close at $77.61 per barrel in New York on Monday.

In London, Brent crude fell $1.05 to $100.64 on the ICE Futures Exchange.

Investor concerns about Greece were heightened when the debt-strapped country said over the weekend it will miss its lower budget deficit targets even after severe cost-cutting. Despite the shortcoming, Europe pledged to loan Greece money to help pay its upcoming bills, but that failed to reassure stock and commodity markets.

Without more financial aid, Greece says it will start running out of money in two weeks. A Greek default could spread to nearby countries and possibly trigger widespread banking problems. That would hamper world energy demand as lending slows and businesses cut spending.

"We have been mired in Greece since the second or third week of July and it has been a topic of conversation in every week or every other week since then," analysts at Cameron Hanover said in a report.

"Germany's parliament last week ratified an aid package agreed upon in July, but prices weakened as the week wore on as investors realized that last week's vote was just the beginning."

Oil fell along with broad declines on global stock markets. On Wall Street, the Dow Jones industrial average, the S&P 500 and the Nasdaq composite were each down about 2 percent. In Asia, benchmarks in Japan, Hong Kong and South Korea were also sharply down.

Meanwhile, manufacturing surveys out of China pointed to muted activity in September as prices for raw materials rose. One survey suggested manufacturing was stagnant, while another showed slight improvement. Both were disappointments for oil analysts and traders, since China is the second largest oil consumer in the world behind the U.S.

"The deterioration in global manufacturing ... supports our view that underlying demand for commodities is weakening," researchers at Capital Economics said. "We expect the prices of oil and industrial metals in particular to fall a lot further."

In other Nymex trading Tuesday, heating oil fell 1.5 cents to $2.74 per gallon. Gasoline futures fell 1.2 cents to $2.50 a gallon. Natural gas was down 0.4 cent at $3.61 per 1,000 cubic feet.

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Oil Drops to Lowest Price Since 2010

Oxford, MS 10/3/2011 (PennyPayDay) – Oil is starting the last quarter of 2011 at the lowest level in more than a year as Greece's debt crisis and the possibility of another recession spooks investors.

Benchmark crude lost $1.47 to $77.73 per barrel in New York. Oil hasn't been that low since September 2010. In London, Brent crude dropped $1.38 to $101.38 a barrel.

Prices tumbled after Greece said it will miss spending targets despite severe cost-cutting. Greece has been relying on international aid to pay its bills, but further loan installments appear in jeopardy because of its inability to manage its budget.

Without more help, Greece will start to run out of money in two weeks.

Meanwhile at the pump, gas prices fell less than a penny to a national average of $3.417 per gallon.

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Oil Below $79 as Fears Grow Over Economy

Tomahawk, WI 9/23/2011 (PennyPayDay) – Oil prices continued to fall sharply on Friday, retreating $2 to below $79 a barrel amid falling equity markets and the prospect of weaker demand for crude as the global economy slows.

By early afternoon in Europe, benchmark oil for November delivery was down $2.07 to $78.44 in electronic trading on the New York Mercantile Exchange. Crude plunged $5.41, or 6.3 percent, to settle at $80.51 on Thursday.

In London, Brent crude for November delivery was down $1.45 at $104.04 on the ICE Futures exchange.

Crude has dropped more than 10 percent, from above $90 last week, as investors fret that Europe's debt crisis -- EU officials have begun to speak openly of the possibility of a Greek default -- and a weak U.S. economy will stymie oil demand.

"Time is running out for Europe, and as a result, it is perhaps running out for the whole world," said James Swanson, chief strategist at MFS Investment Management.

A pledge by countries which account for 85 percent of the global economy, the Group of 20, to restore stability to the world's financial system lifted markets early Friday but that support quickly eroded and indicators fell back into red.

"This morning, we saw a few signs of a correction in the oil market; however, gains proved to be short-lived as crude oil prices reversed and continued their downside momentum tracking fresh losses in global equity markets," said a report from Sucden Financial Research in London.

The worsening global outlook has pounded stock markets, which oil traders look to as a gauge of overall investor sentiment. The Dow Jones industrial average sank 3.5 percent Thursday and the leading Asian and European stock markets fell Friday by as much as 2.5 percent.

The dollar also gained against the euro and weighed on oil prices by making crude more expensive for investors with other currencies.

Signs of weakening industrial production in China this week have analysts predicting that Asian demand for commodities could be slowing.

"The main risk for the region remains the highly uncertain outlook for the global economy," Capital Economics said in a report. "Another global downturn on the scale of that seen in 2008-2009 would see the region's exports plunge."

Some analysts still expect crude demand to outstrip supply and send prices higher. Goldman Sachs reiterated its forecast Brent crude will average $130 next year.

"Global crude oil markets continue to be torn between heightened concerns over the global economic outlook and the continued resilience of crude oil fundamentals," Goldman said in a report. "It is only a matter of time before inventories and OPEC spare capacity become effectively exhausted, requiring higher oil prices to restrain demand."

Others said the psychological impact of the sell-off and the falling markets could push government officials and lawmakers in the U.S. and Europe to act more decisively on economic issues, which, in turn, could encourage investors.

"Markets are capable of turning around rather sharply if investors sense that the politicians are finally 'getting it' and making progress in working together," said senior commodity analyst Edward Meir of MF Global in New York.

In other Nymex trading for November contracts, heating oil fell 3.24 cents at $2.8255 per gallon and gasoline futures lost 0.83 cent to $2.5354 per gallon. Natural gas for October delivery added 3.3 cents to $3.738 per 1,000 cubic feet.

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Oil Falls Near $83 as Fed Warns of Economic Risks

Tomahawk, WI 9/22/2011 (PennyPayDay) – Oil prices plunged to near $83 a barrel Thursday in Asia, extending losses from the previous session after the U.S. central bank warned that already weak economic growth could deteriorate further.

Benchmark oil for November delivery was down $2.52 at $83.40 at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. Crude dropped $1.00 to settle at $85.92 on Wednesday.

In London, Brent crude for November delivery was down $2.31 at $108.05 on the ICE Futures exchange.

Federal Reserve Chairman Ben Bernanke said Wednesday at the end of a two-day policy meeting that there were "significant downside risks" to the Fed's economic forecasts, and highlighted a weak labor market and high unemployment rate.

The Fed also sought to lower lending rates and spur economic growth with a $400 billion program to sell short-term Treasury bills and buy long-term debt -- dubbed "operation twist" -- but analysts said it falls short of the $600 billion bond-buying program that ended this year. Most short-term rates are already near zero percent, blunting the possible benefits of any decline in long-term interest rates.

"We expect it to have only a limited downward impact on longer-term interest rates and the impact on the wider economy will be even more modest," Captial Economics said in a report. "The cost of borrowing simply isn't the problem."

Plunging global equities also weighed on oil prices since traders often look to stocks as a barometer of overall investor sentiment. Dow Jones industrial average fell 2.5 percent Wednesday and Asian stock markets were down Thursday.

In other Nymex trading for November contracts, heating oil fell 5.8 cents at $2.89 per gallon and gasoline futures slid 6.4 cents to $2.59 per gallon. Natural gas for October delivery was steady at $3.73 per 1,000 cubic feet.

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Oil Rises on Expectations of Economic Stimulus

Tomahawk, WI 9/20/2011 (PennyPayDay) – Oil is rising on expectations that the Fed will announce new measures to stimulate the U.S. economy.

Benchmark crude rose $1.20 to $87 per barrel in New York. Brent crude, which is used to price oil produced in foreign countries, increased $1.65 to $110.79 in London.

The Federal Reserve starts a two-day meeting on Tuesday. The Fed has pumped money into the economy by buying billions of dollars in bonds. The influx of cash helped boost oil last fall.

Fed Chairman Ben Bernanke hasn't said specifically what the central bank might do this year as the U.S economy moves at a snail's pace.

Meanwhile gas pump prices fell nearly a penny on Tuesday to a national average of $3.58 for a gallon of regular.

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