Crude Oil Jumps Euro Zone Optimism (USO, UNG, FSLR, CIE, NFX, OAS, PAA, SEMG, APA)
Crude oil jumped over 1% on Tuesday supported by an impressive Spanish bond sale and better than estimated investor confidence data from Germany.
Crude for delivery in May was recently up $1.51, or 1.5%, at $104.47 a barrel on the New York Mercantile Exchange. On Monday, oil ended with a marginal gain, recovering from session lows.
June Brent added 3 cents, or 0.1%, to $118.72 a barrel.
The difference between the two main global oil benchmarks trimmed after reports describing weekend multilateral talks over Iran’s nuclear program in Istanbul as constructive, and as owners of a U.S. pipeline asked federal officials to revert its flow about two weeks sooner than previously thought.
The Seaway pipeline may begin to carry crude from the Midwest to the Gulf Coast earlier, and news of that request weighed on Brent. U.S. refiners in the Gulf mostly use blends that are priced on Brent.
In economic report, U.S. Federal Reserve reported that industrial production was unchanged in March, missing economists’ estimates of a rise of 0.30%.
Elsewhere in the energy complex, May gasoline futures slid 3 cents, or 0.8%, to $3.24 per gallon, while natural-gas futures for delivery in the same month fell 5 cents, or 2.40%, to $1.96 per million British thermal units, trading at a 10-year low.
United States Oil Fund LP (ETF)(NYSEARCA:USO) was up 0.56 (1.43%) at $39.74 and United States Natural Gas Fund, LP (NYSEARCA:UNG) slid 2.44% to $14.77.
First Solar, Inc. (NASDAQ:FSLR) shares soared 13.11% on the news of major restructuring initiatives to boost its bottom line. The company is targeting to reduce its current work force by 2,000 jobs or 30%. The company also has a plan to close its manufacturing operations in Frankfurt, Germany, in the fourth quarter and intends to indefinitely idle four production lines at its manufacturing center in Kulim, Malaysia, on May 1, the Tempe, Arizona-based company.
Cobalt International Energy, Inc. (NYSE:CIE) shares rebounded after yesterday’s 7% fall on report that it could be in violation of the Foreign Corrupt Practices Act due to activities in Angola.
Newfield Exploration Co. (NYSE:NFX) added 5.20% and Oasis Petroleum Inc. (NYSE:OAS) surged 4% after analyst at Jefferies upgraded the stock to Buy from Hold.
Plains All American Pipeline, L.P.(NYSE:PAA) was up 0.50% as the company withdraws its $1B unsolicited bid to acquire SemGroup Corp(NYSE:SEMG), which had rejected the offer of $24/share.
Apache Corporation (NYSE:APA) climbed 2.12% as the company says that it will get a piece of the LNG sales deal between Chevron-run Wheatstone and Chubu Electric Power in Australia.