Oil Prices Reverse Briefly, Fuel Speculation A Reversal Is Nigh

Crude oil futures have rebounded in morning trading, moving almost $4 higher before settling just shy of $56/barrel after hitting a morning high of just short of $57/barrel.

Overnight trading saw nearby crude oil futures dip into the $53 range before starting a rally around 9:00 AM Central Time Tuesday before leveling off and turning back lower around 11:00 AM.

The up move comes a day after many analysts said $40/barrel was the likely low end for crude oil futures, a price point that OPEC leaders said was likely late last week as they announced production from the Middle East and Africa would remain unchanged despite increasing world stocks driven mainly by growing U.S. production in the Bakken Formation region in the northern Plains.

Does Tuesday morning's price action have implications for farmers? Whether or not to book fuel supplies for the 2015 crop year has been widely discussed in the last few days, and while much depends on your individual risk tolerance, Kluis Commodities grain analyst and broker Al Kluis says it's time to buy.

"Crude Oil prices have reversed today. Book 50% minimum of your spring fuel needs now," he says. "Timing is right for a low by next Monday; we did only recommend 50%, so we can buy the last part if it dips lower. Also not a crystal ball decision but a lot of customers need a tax deduction."

Still, not everybody's sold on a market reversal just yet. Tuesday's move could just be a temporary point of buying, and it may not last long.

"I’m the last guy to call a low in oil. $3.50 range today and no indication that the bleeding has stopped," says Peter Meyer, senior director for agricultural commodities at PIRA Energy Group. "Tough call; could go either way at this point but hedgers are definitely buying some on a scale down basis."



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The Dow was up triple digits in midday trading Tuesday as stocks rise with oil's reversal and strong economic data. Chevron (CVS) and Boeing (BA) are helping to lift the blue chips higher. Before the bell, Boeing said it's increasing its quarterly dividend and expanding its stock buyback plan. Darden Restaurants (DRI) and Dave & Buster's (PLAY) will report after the bell.




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The Toronto Stock Exchange’s main equity index has surged nearly 280 points just after noon Tuesday, as bargain hunters gobble up beaten down energy stocks. As of about 12:07 pm EST, the S&P/TSX Composite Index is ahead by 279 points to 13,984, after being up by more than 300 points earlier in the session.




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Because of falling oil prices, a barrel of oil today costs about half what it did a few years ago. That means motorists are paying a lot less for gasoline, airlines are suddenly more profitable, the cost of shipping goods from China is down and Venezuela is facing an economic crisis. Also, oil companies are The post The Fallout From Falling Oil Prices appeared first on Gas 2.




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NEW YORK (TheStreet) -- The S&P 500 and Dow Jones Industrial Average surged Tuesday as crude oil appeared to find a temporary bottom after weeks of crushing losses. After spending much of the morning lower, the S&P 500 spiked 1.3% while the Dow gained 1.4%. Energy shares rallied as investors hoped the commodities crash had found its bottom.




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U.S. stocks are down Tuesday as the price of oil continues to drop and Russia struggles to stabilize the ruble. At the start of trading on Wall Street, the Dow Jones industrial average was down 53.2 points, about 0.3 percent, at 17,127.8. The Standard & Poor's 500 index was off 7.2 points, about 0.4 percent, at 1,982.5.




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Brett Rabatin of Sterne Agee argues that the pullback in banks with energy exposure is overdone, and that several names in the sector offer good value. In his Industry Report dated December 15th, Rabatin says that unless oil prices stay below $60 for an extended period of time, most banks with significant energy exposure aren't [ ] The post Banks Could Get Hit Hard With Oil Prices Below $60 [CHARTS] appeared first on ValueWalk.




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Are Lower Oil Prices Here to Stay. by Fred Fromm, Franklin Templeton Investments When oil prices are skyrocketing, production and exploration efforts tend to ramp up to capture the potential riches, spawning a popular adage: "The cure for higher oil prices is higher oil prices." But is the reverse of this adage true when prices [ ] The post Are Lower Oil Prices Here to Stay.




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McDonald's has a new menu item, and unlike some of its iconic foods -- the Big Mac, fries, McFlurries -- this one is a little less... traditional. Introducing: the Crab Croquette Burger and some of the other surprising dishes you can get at McDonald's




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Trading on European equity markets was very volatile today as a further drop in the oil price weighed on sentiment, while strong PMI's provided some support. In the US, equities opened lower too. After a temporary pick-up, the Russian rouble is under renewed downward pressure with EUR/RUB trading at 90.



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