Crude Oil Price- Oil Prices Bounce Back After Big Plunge
By thestreet.com
Updated Tuesday, 09 August 2011 23:08:12 - IST (UTC +5:30)
Brent crude oil for September delivery was rising 46 cents to $104.20 a barrel and the September contract for West Texas Intermediate light sweet crude oil was adding 71 cents to $82.02.
"Prices are now mustering a bounce -- it had to happen sometime -- as general panic is easing this morning," said Summit Energy analyst Matt Smith.
"All ears now await the rhetoric out of the Federal Reserve meeting today, which will likely be a hat-tip and a head-nod towards quantitative easing, round three," Smith said.
Another round of government stimulus would certainly be bullish for commodity prices as it opens the door for more "easy money."
The Department of Energy's monthly energy outlook will be published at around noon on Tuesday and follows the Organization of the Petroleum Exporting Countries' lowered revision for oil demand for this year and next year. OPEC adjusted its outlook to a rise of 1.4% this year and increase of 1.5% next year.
Natural gas for September delivery was flat at $3.946 per million British thermal units in reflection of fairly hot temperatures in the mid-continent -- or states north of Texas -- and moderately warm readings in the Great Lakes and Northeast; "and a market that continues to be dominated by the supply stream, which is still plentiful," said Cameron Hanover analysts.
"Prices here have already discounted this market in terms of future temperatures and the possibilities of a storm that could close production platforms in the U.S. Gulf," they added.
Oil and gas stocks were advancing. EOG Resources(EOG) was rising 1.6% to $90.05, Apache(APA) was adding 1.5% to $99.82; Devon Energy(DVN) was gaining 2.5% to $66.95; Lucas Energy(LEI) was popping 4.8% to $1.97; Kinder Morgan Energy Partners LP(KMP) was jumping 4% to $67.16; Kinder Morgan Inc(KMI) was adding 4.1% to $24.62; and Southern Union (SUG) was rising 1.7% to $39.54.
-- Written by Andrea Tse in New York.
Tags: thestreet.com Oil Prices Bounce Back After Big Plunge
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