Hess (HES) (HK) (XCO) (APC) Close Up as Oil Prices Explode

Shares of Hess Corporation (NYSE:HES), Petrohawk Energy Corp. (NYSE:HK), Exco Resources Inc. (NYSE:XCO) and Anadarko (NYSE:APC) closed up on Wednesday as oil prices surged in response to news oil inventories unexpectedly dropped.

Oil prices exploded on Wednesday to roar above the $111 a barrel mark, as the U.S. Energy Information Administration announced oil inventories fell by 2.3 million barrels for the week ending April 15.

On the New York Mercantile Exchange, May delivery for West Texas Intermediate crude rose $3.17 or 2.93 percent to reach $111.45 a barrel.

The weakness of the U.S. dollar helped boost a number of commodities, including oil, as the U.S. dollar index dropped 0.91 on Wednesday.

Home heating oil prices increased 6.29 cents to $3.2214 a gallon. Reformulated blendstock gasoline prices rose 4.42 cents to $3.2773 a gallon.

Henry Hub natural gas prices jumped 4.8 cents to $4.31 per million British thermal units.

The national average price of unleaded gasoline climbed to $3.837 a gallon Wednesday, up from Tuesday's $3.835, according to AAA.

Anadarko closed Wednesday at $80.15, up $1.73, or 1.74 percent. Exco Resources Inc. closed at $20.40, gaining $0.12, or 0.59 percent. Petrohawk Energy Corp. ended the trading session at $26.91, rising $0.29, or 1.09 percent. Hess Corporation closed at $80.55, jumping $1.99, or 2.53 percent.

BP (BP) (PBR) (BEXP) (SLB) Close Up as Oil Prices Explode

Shares of Petrobras (NYSE:PBR), Brigham Exploration (Nasdaq:BEXP), Schlumberger (NYSE:SLB) and BP (NYSE:BP) closed up on Wednesday as oil prices surged in response to news oil inventories unexpectedly dropped.

Oil prices exploded on Wednesday to roar above the $111 a barrel mark, as the U.S. Energy Information Administration announced oil inventories fell by 2.3 million barrels for the week ending April 15.

On the New York Mercantile Exchange, May delivery for West Texas Intermediate crude rose $3.17 or 2.93 percent to reach $111.45 a barrel.

The weakness of the U.S. dollar helped boost a number of commodities, including oil, as the U.S. dollar index dropped 0.91 on Wednesday.

Home heating oil prices increased 6.29 cents to $3.2214 a gallon. Reformulated blendstock gasoline prices rose 4.42 cents to $3.2773 a gallon.

Henry Hub natural gas prices jumped 4.8 cents to $4.31 per million British thermal units.

The national average price of unleaded gasoline climbed to $3.837 a gallon Wednesday, up from Tuesday's $3.835, according to AAA.

BP Wednesday at $45.91, up $1.23, or 2.75 percent. Schlumberger closed at $87.89, gaining $1.76, or 2.04 percent. Brigham Exploration ended the trading day at $34.46, rising $1.20, or 3.61 percent. Petrobras closed at $37.84, jumping $0.75, or 2.02 percent.

Shell (RDS-A) (NOG) (MRO) (HAL) Jump on Low Oil Inventories

Shares of Marathon Oil (NYSE:MRO), Shell (NYSE:RDS-A), Halliburton (NYSE:HAL) and Northern Oil and Gas (AMEX:NOG) were all jumping today on news Oil inventories fell by 2.3 million barrels last week, according to the Energy Information Administration.

Expectations were oil inventories were going to increase by 1.6 million barrels.

Consequently the price of crude oil surged over the $110 a barrel mark again. Nymex oil for June delivery increased 2.1 percent to $110.54 as of 11:25 AM EDT.

Northern Oil and Gas was trading at $23.61, gaining $0.54, or 2.34 percent, as of 2:06 PM EDT. Halliburton was trading at $49.57, up $0.56, or 1.14 percent. Royal Dutch Shell was at $ 74.03, rising $2.44, or 3.41 percent. Marathon Oil was trading at $52.86, increasing $1.58, or 3.08 percent.

Halliburton (HAL) (APC) (DVN) (WTI) Close Up as Crude Prices Rebound

Shares of oil and energy companies like Halliburton (NYSE:HAL), Anadarko (NYSE:APC), Devon Energy (NYSE:DVN) and W&T Offshore (NYSE:WTI) closed up Wednesday as crude oil prices rebounded after two days of trading down.

Crude-oil futures were up Wednesday, gaining strength after a period of weakness midway through the day as investors focused on a supply report and hefty gains for gasoline futures.

Crude for May delivery was up 86 cents, or 0.8%, to settle at $107.11 a barrel on the New York Mercantile Exchange. Futures ended a two-day losing streak that had slashed almost 6 percent from prices on Friday.

The Energy Information Administration said crude oil inventories rose 1.6 million barrels for the week ended April 8.

The EIA reported a drop in gasoline inventories of 7 million barrels. Distillates supplies were down 2.7 million barrels.

Both figures showed deeper declines than projected. Analysts were looking for a decrease of 1.3 million for gasoline and unchanged stocks of distillates, which include diesel and heating oil.

Gasoline for May delivery increased 8 cents to $3.24 a gallon, also ending a two-session losing run and reaching the highest prices since Friday.

May heating oil was up 3 cents, or 1 percent, to $3.20 a gallon.

W&T Offshore closed Wednesday at $21.81, gaining $0.03, or 0.14 percent. Devon Energy closed at $87.72, up $1.74, or 2.02 percent. Anadarko closed at $78.34, rising $0.91, or 1.18 percent. Halliburton ended the day at $45.51, jumping $0.17, or 0.37 percent.

Exxon (NYSE:XOM), Chevron (NYSE:CVX), BP (NYSE:BP), Conoco (NYSE:COP) On High Oil Supplies

Oil inventories increased by about one million barrels last weak, pushing the share prices of majors like Exxon (NYSE:XOM), Chevron (NYSE:CVX), BP (NYSE:BP), Conoco (NYSE:COP) all down on the day, although Exxon rebounded some as the day went on.

The big blow was analysts had been looking for a drop in oil inventory of about 1.5 million barrels, creating the 2.5 million oil barrel miss.

For indices tracking the energy sector, the NYSE Arca Oil Index (AMEX:XOI) fell $7.04 to 1,001.85, a drop of 0.70 percent; the Amex Natural Gas Index gained $0.70, or 0.14 percent, rising to $513.77 at 3:41 PM EDT; while the Philadelphia Oil Service Index dropped slightly to $189.62 as of 3:43 PM EDT.

BP was at $38.18, falling $0.41, or 1.06 percent at 3:31 PM EDT; Conoco fell to $56.09, losing $0.43, or 0.76 percent at 3:34 PM EDT; Exxon rose slightly to $61.59, gaining $0.05, or 0.08 percent at 3:44 PM EDT, and Chevron fell to $79.34, dropping $0.41, or 0.51 percent as of 3:45 PM EDT

Oil Prices Drop as Crude Inventory Soars

The release of a report from the American Petroleum Institute on late Tuesday revealed a strong increase in crude inventories in the U.S., rising by 5.87 million barrels last week.

The market had been operating under the assumption there would be a decline in oil inventory.

Concerns over demand from consumers and others continues to weigh on the oil sector, as economic conditions continue to be weak and consumers remain in an austerity mode.

The API added that distillates and gasoline inventories also increased in the same period.

"The API numbers were bearish, showing inventory builds in both refined products and in crude oil stocks, and showing weaker demand," said Cameron Hanover. "The big question for Wednesday is whether the DOE report will in any way mirror the API numbers."

That report for the Energy Information Administration will be released later today revealing data concerning the weekly supply.

Crude Oil Inventories Drop 1.9 Million Barrels

Not unexpectedly because of the Memorial Day weekend in the U.S., crude oil inventories dropped by 1.9 million barrels last week.

Gasoline inventories followed in oil's footsteps, falling by 2.65 million, while distillate inventories increased by 445,000.

Now the real test of summer prices come as related to gasoline and oil demand, with consumers deciding how much they're going to travel and spend over the summer.

It seems to be 50/50 at this time as to whether that will increase or decrease this time around.

Oil Futures Down on Inventory Increase

Oil inventories continue to grow in the United States, and oil futures are falling in response to the increased supply, dropping to $74.40 a barrel a plunge of 1.7 percent on the New York Mercantile Exchange for June. July declined to $78.99 a barrel as well.

The spread, as you can see, is wider than normal, and traders are dropping the June contract in favor of the July futures contract.

That comes from the possibility of having to find storage when the burgeoning oil supply has filled up much of the available space.

Oil levels are now 29 percent higher than last year at the same time, and is the highest since December 2009.

Oil Slumps on Higher Inventories

Oil prices dropped after oil inventory has risen for the 10th straight week.

Prices for May delivery fell to $84.92, a 47 percent decline on Friday. After reaching 17-month high of almost $87 a barrel on Tuesday, prices have fallen $2 a barrel since then.

Taking into account the 10 straight weeks of oil inventory rising, and the 17-year high supply of gasoline, and there's sure to be downward pressure on prices in the next week or two, depending on how long the supply remains high and demand low.

Still, refiners continue to pump out crude oil at increased levels, which consumers will ultimately appreciate as they consider how much they're going to travel this year and whether they're going to stay closer to home.

Crude Oil Futures Up

Crude Oil Futures

After a report from the U.S. Energy Information Administration that gasoline stocks had fallen last week by 2.9 million barrels, the price of crude oil shot up as high as $83.03 a barrel, its highest levels since early January.

The benchmark contract settled to $80.96 as the day went on, a decrease of 0.5 percent a barrel.

Other news affecting the price of oil was the announcement from OPEC that crude demand per day would rise by over 190,000 barrels a day over its previous estimate of 28.94 million barrels a day.

Crude Oil Futures

Oil Refinery Workers New Labor Contract

Union negotiators for oil refinery workers have tentatively agreed to a new contract which represents approximately 24,000 union members.

The new contract deals with labor issues like wage and benefit levels, which the details of the agreement weren't released.

If there had been a strike, it would have affected up to 10 percent of the overall refining capacity in America's oil industry. Other reports say the strike could have affected close to two-thirds of the capacity to make fuels in general, gasoline and diesel.

Details of the oil refinery workers deal will be released sometime on Wednesday by their representatives of the United Steelworkers union. Signing off on the deal was the National Oil Policy Committee, which still has to be ratified by local union units.

Some of the large oil and gas companies that would have been affected by the strike were Exxon Mobil (nyse:XOM), Royal Dutch Shell (nyse: RDSA), BP (nyse:BP) PLC, Valero (nyse:VLO), and Chevron (nyse:CVX), of close to 60 oil producers in general.

Besides higher wages, other issues being negotiated for the oil refinery workers were cost-of-living increases and full benefits for medical, dental and vision; both for current and retired oil workers.

The deal was worked out with Shell Oil, which will also be extended to the other plants, including Valero Energy Corp., Exxon Mobil Corp., Chevron and BP Plc. The deal, if approved, will keep up to six refinery plants from closing, and about 1.7 barrels a day from going off line.

Some of the known parts of the contract are a three percent raise for each of the three years of the contract, along with a signing bonus of $2,500 if it is approved before February 16.

Fuel and oil demand has fallen so much that the refineries have slowed production after falling prices put downward pressure on margins. Oil processors have had a record number of days of making gasoline at a loss, measured by futures prices.

The two largest refiners in America, ConocoPhillips and Valero were leading the fuel production cut in oil refinery output.

Gas prices had surged by 10 percent last week as the possibility of a strike loomed over the oil and oil refinery industry.

On the New York Mercantile Exchange, gasoline for March delivery increased 1.68 cents to $1.166 a gallon. Gas prices across the nation grew to $1.89 a gallon according to AAA.

Now that a strike is probably averted, we should see a corresponding fall in gasoline prices as demand continues to fall.

If things do change economically, this new contract could be a diaster for union members, as higher operating costs through increased wages and benefits could put many oil refinery workers out of a job in the months ahead. But that's how unions always work, as they overreach and cause loss of jobs, while benefitting only some of the members.

For the week ending January 16, oil refinery production had operated at 82.5 percent of capacity, down significantly from the 85.2 percent the week before. It'll a long time before gas and oil demand increase in any major way.

Motorists in the U.S. continue to drive much less, as for the second year they've driven at a lower rate than the previous year. According to the Federal Highway Administration, vehicle miles have plunged by 5.3 percent or 12.9 billion miles. We should see that continue on, and oil refineries operating at even less capacity before it turns around.

Crude Oil Poised for First Annual Decline in Seven Years

With consumers tightening their wallets over economic concerns, crude oil will suffer its first annual decline in seven years, as supplies rise over decreasing demand.

On the New York Mercantile Exchange, prices fell 99 cents for February delivery of crude oil, settling at $39.03 a barrel. Earlier in the day it fell below $38 a barrel. So far this year oil prices are down by 59 percent.

Crude-oil inventory fell last week by 1.45 million barrels, while on the other hand, according to analysts' estimates, gasoline stockpiles are rising, with projections of an extra 1.7 million barrels added for the week ending December 26.

Also increasing were heating oil, diesel, and other distillate fuel supplies, adding 1.5 million barrels to the inventory.

On London's ICE Futures Europe exchange, Brent crude oil fell by 40 cents to end the session at $40.15 a barrel.

I don't see anything changing the primary fundamental of declining oil demand changing any time soon, and that should be the key element to watch with oil, barring any geopolitical problems that may unfold.

Crude Oil Prices Continue to Fall off the Cliff: Now at 15-Month Low

In intraday trading crude oil fell of the cliff again, plunging by over $4 a barrel - a 15-month low. The continued fall in oil prices is completely tied to consumer demand, which has dropped as people cut back on spending on anything but essentials.

December delivery for crude oil dropped by $4.25 to $67.93 a barrel shortly after 11:00 a.m. EST today on the NYMEX. Oil futures hit a low of $67.50, the worst showing since June 27, 2007.

On London's ICE Futures Europe exchange, Brent crude has dropped by $3.40 for the December settlement, a 4.9 percent fall. It now stands at $66.32 a barrel. That's the lowest price since May 10, 2007.

For the week ending October 17, fuel demand in the U.S. averaged 18.7 million barrels a day, according to the report of the Energy Department released today. That's down 8.5 percent from the same period last year.

Average use of gasoline has also fallen, now averaging 8.8 million barrels a day for the last four weeks, down from last year by 4.3 percent.

With distillate fuel (heating oil, diesel) use also dropping significantly, we can see demand for oil will continue to fall for some time.

Even though the unprecedented special meeting by OPEC next month is expected to result in the cutback of 1 million barrels a day in production, that will do nothing to change the demand factor until the global economy recovers. That isn't going to happen any time soon.

Part of the result of all this will be less travel, which will affect not only oil companies, but airlines and shipping companies as well.

Oil inventories also continue to rise, as there was an increase of 3.18 millon barrels to 311.4 million barrels, the fourth time in a row.

Crude Oil Inventory Pressures Commodity Below $69

Most industry watchers had their suspicions confirmed concerning an expanding crude oil inventory in the U.S., as the government report revealed a declining demand as consumers cut back on spending, causing the investory to rise.

As of about 11 a.m. EST, November delivery for light, sweet crude dropped by $4.73 to $68.87 a barrel on the New York Mercantile Exchange.

The last time oil prices were this low was on August 22, 2007, when the session finished at $69.26 a barrel. Prices have plunged since the high of $147 a barrel in July.

What triggered an even bigger fall than looked for was the amount of the inventory growth. Most analysts expected inventories to rise, but were looking for about 3.1 million barrels, instead inventory grew by a more-than-expected 5.6 million barrels for the week ending October 10.

Gasoline inventory tracked oil inventory, rising by 7 million barrels. According to the Energy Information Administration, gasonline demand has fallen by 5.2 percent over the last four weeks, averaging 8.8 million barrels a day, said the agency.