In the energy market on Tuesday, oil broke over $50 but then retreated, with crude for February delivery closing at $48.58/barrel, down 23 cents. February reformulated gasoline gained less than ¾ of a cent, to $1.1892/gallon.

“The first attempt against the $50 psychological level is keeping a lid on this market,” said Burton Schlichter, of New World Trading.

But Phil Flynn, of Alaron Trading, was blunter. “Oil is running out of steam because at the end of the day the global crises have not cost the globe one drop of oil,” Flynn said.

Yet, one might add, as supply cuts haven’t really kicked in. Iran and Kuwait said they will deepen curbs on supplies to customers this month, joining OPEC peers in cutting back output, Reuters reported.

Source: Crude Little Changed

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In the energy market on Friday, oil initially dropped but then busted back to the upside, with crude for February delivery closing at $46.34/barrel, up $1.74 from the short Wednesday session and $7.31 from Tuesday. February reformulated gasoline gained 8 cents from Tuesday, to $1.1105/gallon.

Analysts cited a convergence of factors, including a Russian move to cut off natural gas to Ukraine, the ongoing conflict in the Middle East, and OPEC’s projected production cuts.

“A new mood has greeted the early days of 2009 and one that is not so gloomy,” said Phil Flynn, of Alaron Trading.

The Energy Department provided a boost, too, saying yesterday that it will take advantage of low oil prices to buy oil for the 727 million-barrel Strategic Petroleum Reserve, and fill it in 2009. The energy agency said it has issued a solicitation to buy about 12 million barrels of crude oil for the

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In the energy market Friday, oil prices went haywire, with crude for January delivery closing at $33.87/barrel, down $2.35 on its last day as front-month contract, while crude for February delivery closed at $42.36/barrel, up 69 cents. January reformulated gasoline gained 5 cents, to $0.97/gallon.

Such a wide gap between near month contracts is unusual.

But, “The last standing bulls are rolling over” to buy the February contract while “dumping their January oil on the market,” said Phil Flynn, of Alaron Trading.

Meanwhile, OPEC President Chakib Khelil said that the cartel could continue to slash its output, beyond the 2.2 million barrel/day cut already agreed to.

“We will continue this reduction until the price will stabilize,” Khelil said, while adding that, “We feel very strongly that what happened in 2008 and what’s happening now is due in great part to the speculation.”

And Saudi Arabian Oil Minister Ali Naimi reiterated that $75 a

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In the energy market Monday, oil prices declined, with crude for January delivery closing at $44.51/barrel, down $1.77. January reformulated gasoline lost 4.31 cents, to $1.0369/gallon.

Despite the prospect of production cuts from OPEC tomorrow, the oil market “is doubting that OPEC can do what they say they will do,” said Phil Flynn, of Alaron Trading. Besides, he added, “The market is [also] saying that even if OPEC can cut production, in a slowing economy will anyone buy it?”

Nimit Khamar, an analyst at Sucden Financial, wrote that a 2 million barrel cut may be in the cards. “OPEC needs to show their commitment to bringing markets back in equilibrium and prevent a supply glut,” Khamar said. Less than that “may not be enough to calm markets and prevent prices falling back towards recent lows.”

Russia, which isn’t an OPEC member, will attend the cartel’s meeting this week as an observer. It

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Consumer Confidence Climbs; Home Prices Record Plunge; Troubled Banks on the Rise; Oil Falls 7%; Slim’s Bank Buys Citi Stock; D.R. Horton Shares Vault

The Conference Board said yesterday (Tuesday) that its Consumer Confidence Index now stands at 44.9, up from a revised 38.8 in October. Last month’s reading was the lowest since the research group started tracking the index in 1967. Home prices plunged in the third quarter, according to the S&P Case-Shiller Home Price index, which posted a 16.6% drop for the three-month period. That outpaces the second quarter’s record 15.1% decline. The number of problem U.S. banks and thrifts soared to 171 in the third quarter, up from ...

In the energy market Thursday, oil managed to gain a little ground, with crude for December delivery closing at $58.24/barrel, up $2.08 on its last day as the front-month contract.

“The stock market has firmed up, which is giving the energy market some strength,” said Phil Flynn, of Alaron Trading. “It’s clear that an awful lot of bearish news has already been priced in.”

The Energy Information Administration’s weekly inventory report, delayed a day by the Veteran’s Day holiday, did little to move the market. Crude stocks were near-flat, rising by only 22,000 barrels, far below the forecast for a 1 million barrel gain.

But gasoline supplies rose by 2 million barrels, more than double the 850,000 barrel estimate.

The Organization of Arab Petroleum Exporting Countries, a subset of OPEC, is scheduled to meet in Cairo on November 29. However, non-Arab members of the cartel, such as Venezuela, Iran and Angola, will be

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In the energy market Thursday, oil managed to gain a little ground, with crude for December delivery closing at $58.24/barrel, up $2.08 on its last day as the front-month contract.

“The stock market has firmed up, which is giving the energy market some strength,” said Phil Flynn, of Alaron Trading. “It’s clear that an awful lot of bearish news has already been priced in.”

The Energy Information Administration’s weekly inventory report, delayed a day by the Veteran’s Day holiday, did little to move the market. Crude stocks were near-flat, rising by only 22,000 barrels, far below the forecast for a 1 million barrel gain.

But gasoline supplies rose by 2 million barrels, more than double the 850,000 barrel estimate.

The Organization of Arab Petroleum Exporting Countries, a subset of OPEC, is scheduled to meet in Cairo on November 29. However, non-Arab members of the cartel, such as Venezuela, Iran and Angola, will be

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In the energy market Monday, oil eked out a small gain, with crude for December delivery closing at $62.41/barrel, up $1.37 from Friday. December reformulated gasoline added a penny and three-quarters, to $1.3679/gallon. Early in the day, crude had fallen to $59.10, its lowest level since mid-March, 2007. But every time crude goes “to a new low, a light round of buying emerges to push it up a bit,” said Darin Newsom, a senior analyst at DTN.

Phil Flynn, of Alaron Trading, responded to the Chinese news by calling it “a lot of stimulus that the market wasn’t expecting … It’s a two-year project, and it will increase energy demand from China.”

Flynn added that any gains may not be sustainable, though. “China has gone from having to slow their economy to having to boost it,” he said. “The market is still trying to determine the extent of the global economic

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In the energy market Friday, oil tumbled, with crude for December delivery closing at $63.91/barrel, down $3.90. December reformulated gasoline arrived as front-month contract by slumping 13.3 cents, to $1.3625/gallon.

“Oil prices and [their] moves this year have reflected times of historic upheaval in the world economy,” wrote Phil Flynn, of Alaron Trading. This is “all about the price of oil adjusting itself to a new world economic order and the price of oil adjusting to the fears and the constantly evolving economic crisis.”

OPEC will have to be part of that adjustment, and the cartel is caught between the proverbial rock and hard place.

Mark T. Williams, of Boston University, notes that “the real story is how will OPEC react, and will they become more aggressive in restricting supply.”

Williams continued, writing of the cartel that: “Should they become more aggressive in supply quotes, how will this impact the economy? In particular,

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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

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