"Crude Oil Rises Above $56 on Smaller Than Forecast Supply Gain"
Crude oil rose above $56 a barrel for the first time since November after a U.S. government report showed a smaller-than-expected increase in stockpiles. Crude supplies rose 605,000 barrels to 375.3 million last week, the highest since 1990, an Energy Department report showed. A 2.5 million-barrel gain was forecast by analysts surveyed by Bloomberg News. Companies in the U.S. cut fewer workers than economists forecast, indicating the worst of the recession’s job losses may have passed, a report showed today. “The speculators are piling into oil on signs that the economy is recovering,” said Sean Brodrick, natural resource analyst with Weiss Research in Jupiter, Florida. “Inventories rose only 600,000 barrels when everyone was expecting a gain of 2.5 million, gasoline supplies dropped and employers cut fewer jobs than expected”.....Complete Story
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"Investors Starting to Favor Energy Stocks"
The spring survey of America's money managers conducted by Barron's finds that energy stocks are moving back into favor among investors. In responding to the question to pick the best and worst performing industry sectors for the next 6-12 months, energy was ranked third in the best category and second to last in the worst. One money manager was quoted as saying he expects to see oil prices climbing back to $100 a barrel as a worldwide economic recovery spurs inflation and the Federal Reserve attempts in coming months to mop up all the liquidity it has pumped into the financial system. He characterized the challenge the Federal Reserve faces as "walking a tightrope," and he doesn't.....Complete Story
"Transocean Reports Smaller Than Estimated Decline"
Transocean Ltd., the world’s largest offshore oil driller, reported a smaller than estimated decline in first quarter profit as the company lowered costs in response to slowing demand. Net income dropped to $942 million, or $2.93 a share, from $1.15 billion, or $3.58, a year earlier, Geneva based Transocean said today in a statement. Excluding one time items such as costs to reflect the lower value of two rigs, per-share profit was 27 cents higher than the average of 31 analyst estimates compiled by Bloomberg.
Chief Executive Officer Robert Long reduced operating costs by 17 percent during the January to March period to cope with the lowest quarterly average crude price in more than four years. Energy producers such as BP Plc are delaying projects and slashing budgets to conserve cash.....Complete Story
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