Busines of Day Oil Stocks

Daily business to business article now is change to what is hot topic, how Oil Stocks will bi crash or why?

when Oil Stocks will be crash, see complete article. it about Oil Stocks business on the day..

Oil stocks up as battle rages on in Libya

Oil stocks are back up Tuesday, amid confusion about the situation in Tripoli. After falling yesterday, oil stocks rose today in Europe, and prices for benchmark oil for October delivery were up to nearly $86 in Paris in the afternoon.

Experts estimate that it might take up to three years for Libya to go back to its 1.6 million barrels per day production.

Shares of major oil producers including Exxon Mobil (XOM, Fortune 500), Halliburton (HAL, Fortune 500), Chevron (CVX, Fortune 500) and BP (BP) rose modestly, but gains were capped by fears about the global recovery.
Oil market's 'knee jerk reaction' to Libya

Meanwhile, coal stocks continue to lose ground, reflecting the expected slowdown in Asian economies, most of which run on coal. The Market Vector Coal ETF (KOL) is down almost 20% for the year.

These are among the popular themes on StockTwits Monday:

OptionAssassin: The economy is so bad Exxon laid off 25 congressmen. $XOM

macroQmicro: Getting hosed? Crude #oil futures down 38% since May, average #gasoline price at pump down 9%. $CL_F $UGA

TheArmoTrader: Average WTI price (adjusted for inflation) from 2003-10 = $61.93 ....So far average nominal price in 2011= $96.73. #thoughts $CL_F
0:00 / 1:22 Libya heats up oil markets

CoderTrader: $$ If Libya eventually comes back online, the crack spread should come back down to reality over time. $MACRO $CL_F $USO

StockSage1: Anyone notice that $OIH has now given back all its gains since the Nov 3rd formal FOMC announcement of QE2? $KOL is actually lower.

douglas_blake: $KOL $ANR $WLT $BTU Always amazed to see coal obliterated during corrections. Great example of polling station/scale. $$ To top of page

Confusion over the extent of the rebels' hold on the Libyan capital and a rally in stock markets drove oil prices higher Tuesday, a day after they fell in anticipation of the end of strongman Moammar Gadhafi's regime.

On Monday, Libyans celebrated the news that insurgents had reached Tripoli, but late in the day the appearance of Gadhafi's son and potential successor, whom the rebels had claimed to have captured, called into doubt rebel declarations of victory.

That confusion pushed benchmark oil for October delivery up $1.34 to $85.76 in the afternoon Paris time in electronic trading on the New York Mercantile Exchange.

n London, Brent crude was up 29 cents to $108.65 on the ICE Futures exchange.

Despite the initial jubilation, investors have also questioned how fast Libya's oil production could recover should the rebels take power. Fighting since February has cut the OPEC nation's crude output to 60,000 barrels a day from about 1.5 million, and the country's oil infrastructure has been damaged.

Capital Economics noted that with experts predicting Libya will take months, if not years, to ramp up production, traders may be putting hopes for the country on hold. They may instead be taking their cues from a rally in stock markets across Europe and Asia.

"Even if (Gadhafi) is dislodged soon, the markets may be worried about the scope for infighting between the unstable alliances of opposition forces that appear to have brought him down, and about the possibility of damage to Libya's oil infrastructure in the meantime," Capital Economics said in a report. "Nonetheless, we think that oil prices will fall further as events in Libya unfold."

Goldman Sachs said it was sticking by its forecast that Libya's oil production will average 250,000 barrels a day next year.

Others were more optimistic. Libyan crude output will likely return to pre-conflict levels in the first half of next year, said Richard Soultanian of NUS Consulting.

"With the new regime entirely dependent on oil revenues, the momentum to get facilities operational will be overwhelming," energy consultant Cameron Hanover said in a report. "In order for this new democracy to attract enough support, it will need to get oil flowing right away."

If Libyan production returns promptly, analysts expect the price of Brent to fall more than U.S. benchmark West Texas Intermediate because Libyan crude mostly supplied European markets.


"We expect Brent to drop back below $100 in a matter of weeks, if not days, and to $85 by 2012," Capital Economics said.

Oil stocks were front and center Monday, after news that Moammar Gadhafi's regime in Libya was on the brink of toppling.

Libya is among the major oil players and the resumption of the country's oil production is expected to put downward pressure on crude oil prices. Brent crude -- the European benchmark -- is down about 1% but U.S. crude has gained some 2% Monday.


In other Nymex trading for October contracts, heating oil rose 2 cents to $2.93 per gallon and gasoline futures were even at $2.71 per gallon. Natural gas for September delivery added 1 cent to $3.90 per 1,000 cubic feet.