Oil Prices are actually holding up quite well
Posted: Thu Sep 29, 2011 9:29 pm
Oil had some wild moves from day-to-day but it has stayed in a rather narrow band. If oil stays over $80/bbl (keeping in mind that other than WTI, oil is actually over $100/bbl) all of the Sweet 16 and the companies on our Watch List will be fine. Most are now trading as if oil has already dropped below $60/bbl. A lot of the downside is already prices in. - Dan
Dr. Joseph Dancy will address this at tomorrow's EPG luncheon in Houston. A replay of his remarks will be posted to the website late on Friday.
NEW YORK (AP) -- Oil rebounded Thursday following encouraging economic news in the U.S. and Europe.
The Commerce Department said the U.S. economy grew a little faster in the spring than previously estimated, while the Labor Department said that the number of people seeking unemployment benefits fell sharply last week.
Meanwhile, German lawmakers took a major step toward dealing with the region's debt crisis by strengthening a bailout fund. That eased worries that Europe's debt problems could spread and lead to another recession.
Benchmark crude rose 93 cents to end the day at $82.14 per barrel in New York. Brent crude, which is used to price oil that's produced overseas, was 14 cents higher to finish at $103.95 a barrel in London.
Thursday's rise continues the roller coaster ride for oil prices this month. Oil tumbled 8 percent from Wednesday to Friday last week, then rebounded 6 percent by Tuesday, then fell nearly 4 percent on Wednesday.
Tepid economic growth in the U.S. and other major world economies has forced experts to backtrack on demand forecasts for this year. As concerns of another recession crept into energy markets, traders stayed focused on the European debt crisis and government reports on the state of the U.S. economy.
"The fear factor has simply gone up," independent oil analyst Jim Ritterbusch said. "I've never seen volatility like this, and I've been watching oil for 28 years."
An extended rise or drop in oil will eventually affect gasoline prices. So far, oil hasn't moved by much, wavering between about $80 and $90 a barrel for the past two months.
Dr. Joseph Dancy will address this at tomorrow's EPG luncheon in Houston. A replay of his remarks will be posted to the website late on Friday.
NEW YORK (AP) -- Oil rebounded Thursday following encouraging economic news in the U.S. and Europe.
The Commerce Department said the U.S. economy grew a little faster in the spring than previously estimated, while the Labor Department said that the number of people seeking unemployment benefits fell sharply last week.
Meanwhile, German lawmakers took a major step toward dealing with the region's debt crisis by strengthening a bailout fund. That eased worries that Europe's debt problems could spread and lead to another recession.
Benchmark crude rose 93 cents to end the day at $82.14 per barrel in New York. Brent crude, which is used to price oil that's produced overseas, was 14 cents higher to finish at $103.95 a barrel in London.
Thursday's rise continues the roller coaster ride for oil prices this month. Oil tumbled 8 percent from Wednesday to Friday last week, then rebounded 6 percent by Tuesday, then fell nearly 4 percent on Wednesday.
Tepid economic growth in the U.S. and other major world economies has forced experts to backtrack on demand forecasts for this year. As concerns of another recession crept into energy markets, traders stayed focused on the European debt crisis and government reports on the state of the U.S. economy.
"The fear factor has simply gone up," independent oil analyst Jim Ritterbusch said. "I've never seen volatility like this, and I've been watching oil for 28 years."
An extended rise or drop in oil will eventually affect gasoline prices. So far, oil hasn't moved by much, wavering between about $80 and $90 a barrel for the past two months.