Log in
Login
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

Crude-Oil Futures Settle Up After Steep Two-Day Losses

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/22/2013 | 09:52pm CEST

--Crude struggles to its feet after two-day pounding

--RBOB gasoline recovers after sharp three-day decline

--Budget-deal deadline and product expirations loom next week

(adds weekly price declines in fifth and sixth paragraphs)

 
   By David Bird 
 

NEW YORK--Crude-oil futures prices, battered in a sharp two-day selloff on demand worries, settled modestly higher Friday, while gasoline futures prices rebounded.

"It seems the blood-letting ran its course and the market's trying to catch its breath," said Gene McGillian, broker and analyst at Tradition Energy.

Front-month U.S. benchmark crude-oil futures prices dropped $4.58 a barrel in the previous two days, ending Thursday at a new 2013 low. Prices barely staggered to their feet after the two-day pounding, in which commodity funds shed their expectations of near-term higher prices, helped by a large jump in U.S. crude-oil inventories.

Market anxieties may not let up next week as the March-delivery contracts for reformulated-gasoline and heating-oil futures expire at Thursday's settlement and the March 1 deadline to break a government impasse and reach a deal to avoid $85 billion in automatic spending cuts looms. Failure to reach a deal likely would unnerve markets, traders said.

Light, sweet crude-oil futures for April delivery on the New York Mercantile Exchange settled 29 cents higher, at $93.13 a barrel. The contract fell 3.4%, the worst weekly performance for Nymex crude since Oct. 26, 2012.

April ICE Brent crude oil, which lost $3.99 over the previous two days, settled 51 cents higher Friday, at $114.10 a barrel. The contract lost 3% in the week, the biggest decline since the week ended Dec. 7, 2012.

Analysts at Goldman Sachs said oil prices are now "in line with fundamentals" after moving too high on "forward-looking survey data generating renewed optimism" on the global economy and oil-demand growth. The reality of "lackluster" hard data on actual demand and weak physical markets for oil brought about the selloff, the analysts said in a note.

Pressure on U.S. crude prices built when the Energy Information Administration reported domestic crude-oil stocks rose by 4.1 million barrels last week, more than twice the expected level. Stocks are now sufficient to meet nearly 27 days of current low demand from refiners, EIA data show. That is the highest level of inventory cover since March 1994, and crude-oil stocks outright are at their highest level for this time of year on EIA data beginning in 1982.

Andy Lebow, senior vice president for energy futures at Jefferies Bache, said U.S. crude now appears set to trade in a range of $90-$95 for the near term, down from the recent $95-$100 span.

Meantime, fireworks may surround the expiration of the March-delivery reformulated gasoline futures contract next week. The contract dropped 9.8 cents a gallon in the previous three days from a 20-week high, before recovering to settle 1.4% higher Friday.

Price volatility is common at this time of year as refiners walk a fine line between producing enough fuel to meet the winter-grade specification for the March contract before switching to the costlier, cleaner-burning summer-grade fuel that meets the April contract specifications.

In the last four trading days of the March 2012 contract, RBOB futures, then at a seven-month high, fell 11.05 cents, or 3.5%.

March-delivery RBOB futures rose 4.31 cents a gallon Friday, to settle at $3.0796 a gallon.

March-delivery heating oil futures, which shed 12.8 cents over the previous four sessions, settled 0.85 cent higher, at $3.1042 a gallon.

More information on settlements and highs and lows for futures on Nymex and ICE platforms can be found by searching for the following headlines:

 
   Nymex Light Crude Oil Close 
   Nymex Harbor RBOB Gasoline Close 
   Nymex Heating Oil Close 
   ICE Brent Crude Oil Close 
   ICE Gas Oil Close 
 

Write to David Bird at david.bird@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
React to this article
Latest news
Date Title
10:04a DUR HOSPITALITY SJSC : First Courtyard by Marriott and Residence Inn by Marriott...
09:57a COMMVAULT SYSTEMS : StorIT, Commvault ink distribution deal
09:34a ANSTO AUSTRALIAN NUCLEAR SCIENCE AND TECHNOLOGY : Single-Crystal Diffraction from KOALA featured in JACS
09:29a MINISTRY OF FOREIGN AFFAIRS OF I R OF IRAN : Iranian FM to Kick Off Latin American Tour Next Week
09:24a SPORTS DIRECT : Hackney New School review – watch and learn
09:23a EXPRESS SCRIPTS : George Paz's reign ends after catapulting Express Scripts to No. 1
09:21a MARTIN AIRCRAFT : Chinese Tech Giant Kuang-Chi to Launch $300-Million Global Fund and Incubator in Israel
09:21a CAPITAL STAGE : presents Pulitzer Prize winner
09:15a HANESBRANDS : hits stride with three-pronge strategy to raise shareholder value
09:14a MANCHESTER UNITED : Foxes still underdogs at United
Latest news
Advertisement
Hot News 
ANDALAS ENERGY AND POWER : Issue of Zero Coupon Loan Note
6D GLOBAL TECHNOLOGIES, INC : Change in Directors or Principal Officers, Financial Statements and Exhibits (form 8-K)
AVOLON : sustains strong performance as fleet increases to over 400 aircraft
PETRO MATAD : Expecting "Highly Material" Compensation From Partner
HML : Director Dealing April 2016
Most Read News
04/30 Inbox Blueprint 2.0 – Anik Singal Launches an Easy to Follow Online Marketing Program for Beginners in Email Marketing
04/30 LIPOSUCTION VS. TUMMY TUCK : Which Is Right for Me?
04/30 Derma Essence Facial Serum – Critical Information Released
12:27a FIRST : ® Hosts 20,000+ Students at World’s Largest Robotics Competition
04/30 ACF AUSTRALIAN CONSERVATION FOUNDATION : Coal or coral? Greens plan puts choice in focus
Most recommended articles
12:17aDJChina's Factory Activity Loses Some Momentum -- Update
12:14aDJChina's Factory Activity Loses Some Momentum -- Update
04/30DJChina's Nonmanufacturing PMI Fell in April
04/30DJMARKET SNAPSHOT : Wall Street Isn't Rewarding Low-expectation Earnings Beats
04/30 China April official manufacturing activity expands at slower pace of 50.1 - PMI