Oil Fades As Panic Subsides

Fear and panic have driven the oil market sharply higher over the last few days. Just last week crude oil was trading at $85 per barrel. Overnight, spot crude hit $103.00 per barrel. This massive spike was all on the back of unrest in the Middle East. Libya is now in what appears to be a civil war but the biggest fear on Wall Street is whether or not it would spread to Saudi Arabia. There have been rumors, panic and much more but as of now, it seems it is subsiding. After hitting $103.00 overnight, oil has faded to the flat line on the day.

Oil stocks had jumped on the price spike in crude but are now falling sharply on its retreat. Exxon Mobil Corporation (NYSE:XOM) is trading at $86.04, -1.03 (-1.18%) while ConocoPhillips (NYSE:COP) is trading at $77.76, -0.81 (-1.03%). However, Chevron Corporation (NYSE:CVX) is bucking the trend, trading at $103.15, +0.88 (+0.86%).

The markets are moving on the flat line today, very muted considering the risks and swings in oil. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $130.92, -0.10 (-0.08%).

The markets will remain focused on oil and the Middle East. In addition, key economic data was released today. At 8:30am ET Jobless Claims were reported to have dropped 22,000 to 391,000. This was a slightly bullish number for the markets. However, Durable Goods minus Transportation fell 3.6%. Then at 10:00am ET New Home Sales were reported down 12.6%.

The markets will begin to look at economic news again, especially with the Non Farm Payrolls number coming next Friday.

About Gareth Soloway 168 Articles

Affiliation: InTheMoneyStocks.com

Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial independence, he continued to study the day trading and swing trading world, developing a unique market philosophy and proprietary methods. Following his work in the financial sector, Gareth went on to trade alongside professional traders. Unable to tolerate the hype of Wall Street any longer and having an amazing ability to profit using his developed techniques, Gareth Soloway decided to partner with his friend and colleague, Nicholas Santiago to form InTheMoneyStocks.com. Chief Market Strategist Gareth Soloway serves as the president and CFO of InTheMoneyStocks.Com.

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