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.

Cool News US auto sales rose in June make drop in gas prices

US auto sales rose in June drop in gas prices

Gas prices hit a sweet spot for automakers last month. They fell far enough to spur pickup truck sales, yet remained so high that small cars sold well, sometimes just hours after reaching dealers’ lots. Toyota and Honda couldn’t take advantage, however. Their sales plummeted more than 20 percent each as they ran short of cars because of the ongoing problems from the March earthquake in Japan. Those declines - and the continuing weakness in the US economy - meant sales grew more slowly in June than they might have. US sales rose 7 percent to 1.05 million. Analysts had expected a double-digit gain. Sales aren’t expected to pick up until fall, when Japanese production is at full capacity. “Some consumers have decided to sit on their hands and delay their purchases,’’ said Don Johnson, GM’s vice president of US sales. General Motors Co. and Ford Motor Co. both said their sales rose 10 percent. And the Chevrolet Cruze small car vaulted past perennial best-sellers such as the Toyota Camry and the Honda Civic to become the best-selling car in America. Chrysler Group’s sales increased 30 percent thanks to popular new products such as the Jeep Grand Cherokee and Chrysler 200 sedan. Gas prices averaged $3.68 per gallon in June, cheaper than in May but hardly inexpensive. It was enough to change some buyers’ behaviors. “There is a certain portion of consumers that react to gas prices almost on a daily basis, and they decide what to buy based on those prices,’’ said Jesse Toprak, vice president of industry trends and insights for car pricing site TrueCar.com. That made June a good month for General Motors and Ford, which have traditionally relied on truck sales and now have strong lineups of smaller, fuel-efficient models as well. The drop in gas prices lured more pickup truck buyers. Chrysler reported a 35 percent increase in Ram truck sales, while Chevrolet Silverado sales rose 5 percent. Any jump in pickup sales helps the Detroit automakers, which sell more than five times as many pickups as foreign-based brands. But even Nissan Motor Co. benefited. Sales of its Frontier small pickup rose 51 percent. Ford said even pickup buyers had their eye on gas prices. More than half of F-150 buyers chose smaller V-6 engines over V-8s. It was the first time smaller engines outsold larger ones since the 1980s. Small cars also remained hot sellers. Sales of the Cruze more than doubled those of the car it replaced, the Chevrolet Cobalt, while sales of the Ford Fiesta subcompact were up 438 percent from last June. But automakers could have sold more small cars without the supply disruptions in Japan. Sales of the Toyota Prius hybrid fell 61 percent to 4,340, their lowest level in seven years, according to TrueCar.com, while Honda Civic sales were down 35 percent. US automakers sold as many small cars as they could make, but they couldn’t meet the demand for small cars alone. The industry began June with a 30-day supply of compact and subcompact cars, and inventory has only gotten tighter, Ford’s top US sales analyst George Pipas said. Chevrolet has only 18 days’ worth of the subcompact Aveo to sell. Some new Ford Focus small cars sold within hours of arriving at dealerships.