Crude Oil Rises For The Second Day, Greece In Focus (USO, UNG, XOM, FSYS, CLF, CNQ, UDRL, FTK)
Crude oil futures jumped for the second consecutive day as investors are betting that Greece will be able to clinch its strike a debt-swap deal with the country’s private bondholders.
Crude oil for April delivery surged 70 cents, or 0.65%, to $106.86 a barrel on the New York Mercantile Exchange.
Commodities were trading higher Thursday on reports that the Greek government was on the verge of completing the sovereign restructuring deal needed to prevent default. The majority of bondholders have agreed to book huge losses on their holdings ahead of the deadline Thursday.
Also supporting the crude was weak dollar with the dollar index recently traded at 79.19, from 79.692 in late North American trading on Wednesday.
However, natural gas prices slumped to 10-year low after The Energy Information Administration reported a fall 80 billion cubic feet for the week ended March 2, missing analysts’ estimates of declines between 82 bcf and 86 bcf for the week.
The April contract plunged 5 cents, or 2.3%, to $2.25 per million British thermal units.
Earlier, The European Central Bank and Bank of England decided to kept interest rates unchanged after policy meetings, in line with estimates.
Among other energy products, April gasoline added 3 cents, or 1%, to $3.32 per gallon. April heating oil climbed 5 cents, or 1.4%, to $3.25 per gallon.
United States Oil Fund LP (ETF)(NYSEARCA:USO) climbed 0.50% to $40.81 and United States Natural Gas Fund, LP(NYSEARCA:UNG) fell 1.64% to $17.98.
Exxon Mobil Corporation(NYSE:XOM) said that the company is targeting to increase capital spending to $37 billion through 2016. The company, forecasting a 30% jump in global energy demand by 2040, was outlining at a New York Stock Exchange a presentation how it intends to allocate the money. Shares of XOM are down over 1%
Fuel Systems Solutions, Inc.(NASDAQ:FSYS) lost over 3% after the company reported lower than estimated fourth quarter profit, but guided revenue for FY2012, topping analysts’ target. The company expects to generate revenue of $420 million and $440 million in 2012, ahead of consensus of $437.3 million. The company earned $1.4 million or 7 cents a share on revenue of $111.0 million in its fourth quarter, compared to analysts’ target of 14 cents a share on revenue of $97.9 million.
Cliffs Natural Resources Inc(NYSE:CLF) gained 1.76% on positive comments from Dahlman Rose, which believes the company’s exposure to bulk commodities, operations in politically stable jurisdictions and long-life ore bodies make it an attractive takeover candidate.
Canadian Natural Resource Ltd (USA)(NYSE:CNQ) added 1.225 to $35.60 after it earned C$0.89 a share on revenue of C$4.21 billion in its fourth quarter, topping analysts’ estimates by 2 cents.
Union Drilling, Inc.(NASDAQ:UDRL) fell 0.77% after the company said that it earned 9 cents a share on revenue of $68.3 million in its fourth quarter, compared to analysts’ estimates of 6 cents a share on revenue of $65 million.
Flotek Industries, Inc.(NYSE:FTK) shares soared 9.33% to $12.07 after the company said that it earned 20 cents a share on revenue of $74.90 million in its fourth quarter, compared to analysts’ estimates of 15 cents a share on revenue of $74 million.