Mon, May 28, 2012, 4:13 PM EDT - U.S. Markets closed for Memorial Day

Oil price little changed, near $101 per barrel

Oil prices steady as investors assess Greece austerity plan; natural gas jumps 4 percent

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NEW YORK (AP) -- Oil prices didn't change much on Tuesday, as Greece and its creditors continued to work on plans to trim massive debts. Natural gas prices jumped as bargain hunters snapped up contracts that are still the cheapest in 10 years.

Benchmark crude fell 17 cents to finish at $100.74 per barrel in New York. Brent crude fell 4 cents to end at $117.35 per barrel in London.

Greece approved another round of spending cuts and other austerity measures over the weekend, and it was rewarded Tuesday with slightly lower borrowing costs. Greece's economy remains a shambles, but analysts say the reforms should shield eurozone banks and keep the region's economy from sinking further.

In the U.S. natural gas futures surged by 10 cents, or 4.2 percent, to finish at $2.53 per 1,000 cubic feet. Analysts say investors are betting that prices have dropped about as far as they'll go, and they'll eventually rebound. So they're buying.

The U.S. remains flush with natural gas, however, and that's expected to continue, if producers like Chesapeake Energy Corp. and Exxon Mobil Corp. don't take more natural gas rigs offline, analysts said.

"We'd need another ice age before we're going to see these inventories drop," independent oil analyst Stephen Schork said.

Retail gasoline prices were flat at a national average of $3.51 per gallon, according to AAA, Wright Express and Oil Price Information Service. A gallon of regular is 13 cents higher than it was a month ago and 39 cents above a year ago.

In other energy trading, heating oil rose about half a cent to end at $3.17 per gallon and gasoline futures fell by 3 cents to finish at $2.98 per gallon.

 

5 comments

  • Northern Light  •  Ossining, New York  •  3 months ago
    Gas will be $5.00 a gallon by Memorial Day. Oil will go to $150.00 a barrel, then the house of cards will collapse again, just like 2008
  • dave  •  3 months ago
    We need someone that is a leader .Someone that knows what the oil prices are so high and we can stand behind to fight for us over the price of a barrel of oil .I think he or she would have a lot of people that would follow him
  • Bill  •  3 months ago
    market is up, oil is up...market is down, oil is up....wind blows out of the south, oil is up....he said she said, oil is up...enough is enough!
  • Homer  •  3 months ago
    Thirteen cents higher than a month ago ??? Where does this guy live in a cave .... it's thirteen cents higher than it was yesterday .... and 39 cents higher than it was a month ago .... time to get your facts straight!!!!
  • thelightofthenorthstar  •  3 months ago
    We have three oil masters; OPEC, Big Oil and the investment banking industry. The Organization of Oil Producing Countries (OPEC) is a cartel that sells us oil. They control the production of oil to insure the highest price. OPEC has made record profits while denying the world oil.
    Big Oil (Exxon, BP, Shell etc) are partners with OPEC and provide the drilling rigs and technology to extract, refine, ship, store and distribute oil throughout the world. The profits that Big Oil made the last few years are the largest profits made by any industry in history.
    The third giant player in the oil scam is the investment banking industry. Banks, along with hedge funds and other investment entities, buy our oil when the price is low and store it on supertankers and storage facilities. They have armies of oil traders whose only mission in life is to raise the price of oil. They also have currency traders who try to lower the value of the dollar. If the value of the dollar goes down then it will cost more dollars to buy that barrel of oil. By this market manipulation they have taken oil to $100 plus dollars a barrel and predict that it will go much higher. These vultures have taken our taxpayer bank bailout money and have created record profits for their banks while all the time draining our pockets.
    The high oil prices are having an effect on the price of food. Most of your food is trucked into your state and if the price of diesel is high you can just bet that cost is going to be passed on to the consumer. I can’t imagine how my elderly neighbors who are on a fixed income are coping. So as we watch the price of everything rise due to the cost of fuel, we have to pray that our elected officials will hear our pleas to stop this fleecing of their citizens. But don’t hold your breath, lawyers, lobbyist, hedge funds and bankers are big financial supporters of our congressional delegations. Our lawmakers need to distance themselves from their oil masters. We need new laws to protect us; speculation in the oil market must be stopped. All of us are under attack from the oil predators. Call your elected representatives and ask them to repeal the Commodity Futures Modernization Act of 2000 and The Financial Services Modernization Act of 1999 and get speculators out of the oil market!
 
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