Oil Falls the Most in Two Weeks After Consumer Sentiment Drops

Crude oil declined the most in two weeks after a report showed that confidence among U.S. consumers unexpectedly dropped this month. Oil fell as much as 1.7 percent as the Reuters/University of Michigan preliminary consumer sentiment index dropped to 72.5 from February’s reading of 73.6. A gain to 74 was forecast, according to the median of 68 estimates in a Bloomberg News survey. Prearranged orders to sell oil at specific prices, known as stops, may have been triggered when oil breached today’s low.

“The selling started after the consumer confidence numbers were released,” said Addison Armstrong, director of market research at Tradition Energy in Stamford, Connecticut. “The market has been tenuous and once we started working lower the move gathered strength. We’ve taken out some stops and are looking to test more.” Crude oil for April delivery fell $1.16, or 1.4 percent, to $80.95 a barrel at 12:27 p.m. on the New York Mercantile Exchange. Prices touched $83.16, the highest level since Jan. 11. Futures are little changed this week and are 72 percent higher than a year ago.

Brent crude oil for April delivery declined $1.24 cents, or 1.5 percent, to $79.04 a barrel on the London based ICE Futures Europe exchange. Prices climbed earlier as retail sales gained. The Commerce Department reported that purchases gained 0.3 percent last month. A 0.2 percent decline was projected, according economists surveyed by Bloomberg News. “There’s a rush to interpret every new piece of economic data,” said Michael Fitzpatrick, vice president of energy at MF Global in New York. “We did reach $83.16, a new high, but otherwise today is a sleeper.”

Reporter Mark Shenk can be reached at mshenk1@bloomberg.net


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Crude Oil Gains for Second Day on Speculation Demand Will Rise

Crude oil rose for a second day on speculation improving world demand and OPEC supply restrictions will help slow growth in stockpiles.

A report tomorrow in the U.S., the world’s largest oil consumer, will probably show consumer confidence is at its highest in a month, according to a Bloomberg News survey. Japan, Asia’s second largest oil importer, posted a current account surplus in January as exports climbed for a second month. Kuwait, the fourth largest Organization of Petroleum Exporting Countries producer, will maintain oil export limits through June, the Kuwait Times reported on March 6.

“Macro-economic sentiment seems to be fairly positive,” said Toby Hassall, research analyst with CWA Global Markets Pty in Sydney. “That’s helping to nudge oil up but the actual physical supply and demand data is still soft.”

Crude oil for April delivery rose as much as 54 cents, or 0.7 percent, to $82.04 a barrel in after hours electronic trading on the New York Mercantile Exchange. It was at $81.92 at 1:24 p.m. in Singapore.

The contract increased 1.6 percent to $81.50 on March 5, the highest closing price since Jan. 11, after a report showed U.S. employment declined less than forecast in February. It gained 2.3 percent last week as global equity markets rallied and U.S. refining climbed to a five month high.

Gains in the equity markets are supporting prices, Hassall said. The extent of oil’s rally after last week’s U.S. inventory report was surprising given that crude stockpiles are still rising and gasoline stocks remain high, he said.....Read the entire article.


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Crude Oil Drops More Than $2 as U.S. Consumer Confidence Falls

Crude oil fell more than $2 a barrel as confidence among U.S. consumers dropped in February to the lowest level in 10 months, a signal that energy demand may be slow to recover.

Oil for April delivery decreased as much as 2.6 percent from a five week high as the Conference Board’s confidence index weakened to 46, lower than anticipated, from a revised 56.5 in January. A report earlier today showed German business confidence declined for the first time in 11 months in February.

“This is a huge drop from the Conference Board,” said Phil Flynn, vice president of research at PFGBest in Chicago. “If consumers are going back into the hole, the likelihood of gasoline demand being strong is pretty weak.”

Crude oil for April delivery declined $1.94, or 2.4 percent, to $78.37 a barrel at 10:15 a.m. on the New York Mercantile Exchange. Earlier, it touched $78.22 a barrel.
Yesterday, the March contract expired at $80.16, capping a five day rally of 8.1 percent.

The Ifo institute in Munich reported earlier today that its business climate index, based on a survey of 7,000 executives, fell to 95.2 from 95.8 in January. Economists expected a gain to 96.1, according to the median of 37 forecasts in a Bloomberg News survey.....Read the entire article.


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Oil Falls to a Two Week Low on Reduced Demand, Stockpile Gain

Crude oil fell to the lowest in more than two weeks as reduced demand and rising stockpiles in the U.S. will ensure adequate supplies during the North Atlantic hurricane season. Oil traded below $70 a barrel for a second day after an unexpected decline in U.S. consumer confidence and reports showed gasoline demand in the nation at the lowest in more than 12 weeks. Tropical Storm Claudette, which will be the first to make landfall in the U.S. this season, is expected to cross the coast of Florida “very soon,” according to the National Hurricane Center.....Complete Story

Oil Plunges 3% to Just Over $69

Oil prices fell more than 3% to $69 a barrel on Tuesday, pressured by a stronger U.S. dollar and as weak consumer confidence data hit equities. Crude for August delivery traded $2.15 lower at $69.34 a barrel, off its earlier eight month high of $73.38. The U.S. dollar rose against the euro, adding pressure to oil prices. A stronger dollar makes commodities denominated in the currency more expensive for investors.....Complete Story

Oil Falls From Eight Month High on U.S., U.K. Economic Reports

Crude oil fell from an eight month high and gasoline slipped as reports showed that U.S. consumer confidence showed an unexpected decline in June and the U.K. economy shrank the most since 1958. Oil dropped more than $2 after the Conference Board’s sentiment index weakened to 49.3 from a revised 54.8 in May, the New York based research group said today. Gross domestic product in the U.K. decreased 2.4 percent in the first quarter from the final three months of 2008, the Office for National Statistics said today in London.....Complete Story