In the energy market on Tuesday, crude for July delivery was nearly unchanged, closing at $68.55/barrel, down 3 cents. July reformulated gasoline rose a half-cent, to $1.93/gallon.

Crude had fallen as low as $66.48 early in the day, before the housing data sparked hopes of an economic recovery and a rebound in energy demand.

“Oil is reacting to the bullish fundamental outlook of a weak dollar against the backdrop of an improving economic outlook,” said Phil Flynn, of Alaron Trading.

But there remains a lot of uncertainty. “Everyone is wondering whether the across-the-board rallies are for real or not, and whether prices have already over-discounted the modest signs of recovery we see cropping up,” wrote Edward Meir, of MF Global.

“For the moment, we think there is still too much buy-side momentum to call a top in any of these markets, be it energy, U.S. equities, or base metals,” Meir added. He

In the energy market Tuesday, oil touched a 22-month low at $53.96 but then edged higher, with crude for December delivery closing at $54.39/barrel, down 56 cents. Gasoline for December delivery dropped 3.8 cents, to $1.1386/gallon.

The average U.S. price for gallon of regular gasoline at the pump now stands at $2.068, according to AAA’s Daily Fuel Gauge Report, down more than $1 from the year-ago level of $3.095.

Crude’s precipitous fall is having an effect in the field, says Charles Perry, president of Perry Management, who says that, “With the decrease in oil prices … we are now seeing a drop in active drilling rigs, and some are being stacked … Truth is, several of the drilling prospects are no longer economical, and plans to drill them have been shelved. Same is true in the gas producing areas.”

Perry added that, “When an oil company leases a drilling block, the usual

In the energy market Friday, oil shot up, with crude for December delivery rallying past $70 to close at $70.53/barrel, up $6.62. December reformulated gasoline rocketed 17 cents higher, to $1.5327/gallon. Volatility remains the rule as Monday’s 5.8% plunge in crude was followed by yesterday’s 10.4% moon shot.

“It seems like prices are moving on the ‘mood of the day’ regarding what is going on from an economic standpoint,” said Chip Hodge, of MFC Global Investment Management.

“When we see not so bad or marginally good news, prices [rise] as demand is expected to be better and when we see negative news, prices drop as the perception is that demand will drop and there will be a large build in supply,” Hodge wrote.

And then there’s politics. “This election has created more turmoil than I remember ever occurring before,” said Charles Perry, president of energy-consulting firm Perry Management.

“There was so much unknown

In the energy market Friday, oil moved higher, with crude for December delivery closing at $67.81/barrel, up $1.85. November reformulated gasoline fell 2.57 cents, to $1.4413/gallon.

Thus ended a record-setting month, with crude’s front-month contract plunging by 32.6%, the biggest monthly decline recorded on the Nymex since trading began in 1983.

“The oil market had the biggest change of heart since the tin man in the Wizard of Oz,” said Phil Flynn of Alaron Trading.

And Charles Perry, president of Perry Management, could only comment that, “I think we are all hoping for a more stable market in November, particularly after the election is over.”

Looking ahead, “Demand-side concerns are going to keep oil under pressure and we should find out soon just what price the Saudis want to defend,” said Michael Lynch, president of Strategic Energy & Economic Research. “Clearly, we are below the level that the price hawks, such as

In the energy market Thursday, oil moved a bit higher, with crude for December delivery closing at $67.84/barrel, up $1.09. November reformulated gasoline rose three-quarters of a cent, to $1.5778/gallon.

The day’s action reflected a general belief that OPEC members will vote for some kind of supply contraction during their emergency meeting in Vienna today. The cartel’s members have reached a “consensus” on a cut, and have only to decide on its size, according to Venezuelan Oil Minister Rafael Ramirez.

OPEC producers do “seem determined to take action to pare back formal production ceilings this week, focusing remaining debate on the depth and timing of cuts,” wrote Catherine Hunter, an energy analyst at Global Insight.

However, “With the global economy teetering on the brink of a more widespread recession, there are concerns amongst members less dependent on a higher oil price … that a sudden deep cut will rebound back on the

In the energy market Monday, crude for November delivery plunged, closing at $96.37/barrel, down $10.52 from Friday. November reformulated gasoline plummeted 25.4 cents, to $2.3615/gallon. The day’s action was pretty easy to interpret.