"Oil Falls the Most in Seven Weeks as Dollar Gains, Stocks Drop"
Oil fell the most in seven weeks as a stronger dollar reduced the appeal of commodities and on speculation supplies will rise as the recession reduces demand.
Oil dropped as the dollar rose to a one-month high versus the euro, making crude less attractive as a currency and inflation hedge. An Energy Department report last week showed U.S. crude oil inventories climbed to the highest level since September 1990 as demand dropped.
“The strength of the dollar has prompted a selling in the oil market,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “We repeatedly shift from concentrating on the fundamentals of high inventories and low demand on one hand and hopes of recovery later this year. The fundamental picture has reasserted itself today.”....Complete Story
"Halliburton 1Q Profit Tumbles, Cuts Jobs"
Halliburton Co. kicked off the oil sector's first-quarter earnings period on a dour-but-not-unexpected note Monday, reporting net income that tumbled 35 percent from a year ago and offering a poor outlook. It also said it cut more than 2,000 jobs in the first three months of the year.
The company, which has corporate headquarters in Houston and Dubai, was hurt as oil and natural gas producers, stung by low prices, cut back on exploration and drilling, particularly in North America. That's bad news for service companies like Halliburton, which help producers with drilling, reservoir management and other oilfield work.
A major barometer of oil-patch activity is the U.S. rig count, which has fallen more than 50 percent since the end of August. Analysts say the count is likely to fall even more — perhaps another 20 to 30 percent — as producers continue to scale back spending amid bloated oil and gas supplies and weak demand....Complete Story
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