US stocks dip as oil pushes energy sector lower

NEW YORK—A slump in energy prices pushed the stock market back from record levels on Tuesday.

Energy stocks slid as the price of oil resumed its descent. Traders speculated that member nations of the oil-producing group OPEC would fail to agree on production cuts at an upcoming meeting in Vienna on Thursday. Oil has now dropped almost a third from a peak in June.

While lower oil prices are a long-term boon to consumers and industrial companies, they are a drag on stocks in the near term because energy companies account for about 10 percent of the overall market’s profits.

Despite the losses, the major indexes remain close to all-time highs.

Stocks have been drifting gradually higher this month, having rebounded sharply from a slump in October, as investors have grown more confident that actions from central banks around the world will help bolster the global economy. The gains are likely to continue for now, said Jim McDonald, chief investment strategist at Northern Trust.

“People’s sentiment is still pretty conservative,” McDonald said. “That means that the slow-and-steady market can continue longer than people anticipate.”

The Standard & Poor’s 500 index fell 2.38 points, or less than 0.1 percent, to 2,067.03. The Dow Jones industrial average dropped 2.96 points, or less than 0.1 percent, to 17,814.94. The Nasdaq composite gained 3.36 points, or 0.1 percent, to 4,758.25.

Stocks started the day with small gains after a report showed that the US economy grew at a solid 3.9 percent annual rate in the July-September period, faster than the 3.5 percent that was initially reported. The upward revision was due to higher estimates of spending by consumers and businesses, the Commerce Department said.

That positive report was tempered by news that US consumer confidence fell in November. The Conference Board says its consumer confidence index fell to 88.7, down from a seven-year high of 94.5 in October. The decline primarily reflected less optimism in the short-term outlook as consumers expressed less confidence in current business conditions.

Among individual stocks, Pall, a company that makes filters for the food and health care industries, was the leading gainer in the S&P 500. The company’s stock jumped $3.31, or 3.5 percent, to $98 after its earnings beat the expectations of Wall Street analysts.

Energy stocks slid along with oil prices following reports that the world’s biggest producers are unwilling to cut production to help stop a slump in the price of crude. The sector dropped 1.6 percent and is now down 3.2 percent for the year. It’s the only one of the 10 industry sectors in the S&P 500 that is down for the year.

Representatives from Venezuela, Saudi Arabia, Mexico and Russian state oil giant OAO Rosneft met Tuesday ahead of a meeting of the Organization of the Petroleum Exporting Countries in Vienna and didn’t announce any immediate plans to cut output, The Wall Street Journal reported.

Benchmark US crude fell $1.69 to close at $74.09 a barrel on the New York Mercantile Exchange. Brent crude, a benchmark for international oils used by many US refineries, fell $1.35 to close at $78.33 a barrel on the ICE Futures exchange in London.

In metals trading, the price of gold rose $1.40 to $1,197.10 an ounce. Silver rose 18 cents to $16.55 an ounce and copper fell four cents to $2.96 a pound.

US government bond prices rose. The yield on the 10-year Treasury note fell to 2.26 percent from 2.31 percent Monday. The dollar fell to 117.94 yen from 118.28 yen late Monday. The euro rose to $1.2472.

In other energy futures trading on the NYMEX:

— Wholesale gasoline fell 0.1 cent to close at $2.032 a gallon

— Heating oil fell 0.1 cent to close at $2.395 a gallon.

— Natural gas rose 13.1 cents to close at $4.282 per 1,000 cubic feet– Steve Rothwell

source: business.inquirer.net

Oil prices climb in Asian trade

SINGAPORE – Oil prices rose in Asian trade Monday as robust US jobs data boosted hopes for stronger energy demand in the world’s biggest economy.

New York’s main contract, West Texas Intermediate (WTI) for January delivery, was up 23 cents at $97.88 a barrel in mid-morning trade, while Brent North Sea crude for January rose 13 cents to $111.74.

Singapore’s United Overseas Bank said in a research note that prices were supported “by the outlook for increased demand after strong jobs data from the US, the world’s top oil consumer.”

The US government reported last week that the unemployment rate fell sharply to 7.0 percent in November from 7.3 percent in October.

The data, which pointed to further strength in the US economy, also saw a better-than-expected surge of 203,000 jobs generated.

As the world’s largest oil consuming nation, the health of the American economy has a major influence on the crude oil market.

source: business.inquirer.net

Oil prices drop after Iran nuclear deal

BANGKOK – Oil prices sank Monday as a nuclear deal between Iran and six world powers made it more likely that the sanctions choking Iranian oil exports will eventually be lifted.

Brent crude, a benchmark for international oils, was down $2.43 at $108.62 a barrel at midmorning Bangkok time in electronic trading on the ICE futures exchange in London.

Benchmark U.S. crude fell 85 cents to $93.99 on the New York Mercantile Exchange.


After marathon negotiations in Geneva, Iran on Sunday reached an agreement with the U.S., Britain, France, Russia, China and Germany to limit enrichment of uranium to 5 percent, far below the level needed for nuclear weapons.

Iran got limited relief from sanctions that have hobbled its economy, but an embargo on its oil exports remains in place while negotiations continue for a more enduring deal to ensure the country only uses nuclear technology for peaceful purposes such as power generation.

If Iranian oil returns to international markets, the additional supply is likely to make crude less expensive.

Benchmark U.S. crude is down from about $110 in October because of ample supplies and muted demand.

In other energy futures trading on Nymex:

— Wholesale gasoline dropped 4.6 cents to $2.665 gallon.

— Heating oil shed 4.8 cents to $2.991 a gallon.

— Natural gas added 7.7 cents to $3.845 per 1,000 cubic feet.

source: business.inquirer.net

Survey: U.S. gasoline prices drop 7 cents

(CNN) -- The average price for a gallon of regular U.S. gasoline slipped almost 7 cents over the past two weeks, chasing a drop in crude oil prices, according to a nationwide survey published Sunday.

A gallon of regular now costs $3.85 on average, the Lundberg Survey found. In the past month, average prices have fallen more than 12 cents.

"The price decline comes from lower crude oil prices," said publisher Trilby Lundberg.

That's good news for consumers, but it comes from a negative place, she said.

"Oil prices themselves are down because the oil market sees economic weakness in Europe and the United States, which is a negative for oil demand," said Lundberg.

The survey tabulates prices every two weeks at thousands of gas stations nationwide.

The average price nationally one year ago was just shy of $4 -- some 15 cents under the current average, Lundberg said.

The city with the lowest average price per gallon was Tulsa, Oklahoma, at $3.40. The city with the highest average price was Chicago at $4.32.

Here are prices in some other cities:

-- Atlanta: $3.68

-- Boston: $3.90

-- Denver: $3.82

-- Houston: $3.74

-- San Francisco: $4.21

source: CNN

Oil hovers below $98 amid mixed US demand signs

SINGAPORE (AP) — Oil prices hovered below $98 a barrel Thursday in Asia amid mixed signs about the strength of U.S. crude demand.

Benchmark crude for March delivery was down 1 cent at $97.60 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell 87 cents to settle at $97.61 on Wednesday.

Brent crude was steady at $111.56 a barrel on the ICE Futures Exchange in London.

A jump of U.S. crude inventories last week by 4 million barrels suggested oil consumption is sluggish. However, factories raised output in January by the most in seven months, the Institute for Supply Management said Wednesday while the Commerce Department said construction spending rose 1.5 percent in December, the fifth straight monthly gain.

Oil prices have hovered near $100 for the last few months amid mixed economic signs from the U.S., Europe and Asia. Some analysts expect crude to begin to rise as the global economy may grow more this year than previously expected.

"The crude oil price has become stuck in a remarkably extended period of narrow sideways trading," Barclays Capital said in a report. "However, the market is now likely to start to position for an upside break based on a greater degree of relaxation about macroeconomic prospects."

In other energy trading, heating oil rose 1.4 cents to $3.06 per gallon and gasoline futures were up 0.3 cents to $2.90 per gallon. Natural gas gained 0.8 cent to $2.39 per 1,000 cubic feet.

source: philstar.com