الفال 111
03-05-2010, Mon 8:27 PM
Oil and retail gasoline prices moved higher Monday, as traders watched whether the massive crude spill in the Gulf of Mexico will curtail imports if the oil slick shuts down a key shipping lane.
Analysts said Monday oil prices are not being driven by the spill for now.
Instead they credit economic news -- improving manufacturing, construction and consumer spending figures -- along with a stronger stock market for driving prices higher.
"It just lends more credence that the economy is on the rebound," oil analyst and trader Stephen Schork said.
To this point, supplies have not been interrupted. Ships have been able to go around the slick to make it to the Southwest Pass. The pass is a vital area where oil and other products make their way to the Mississippi River on the way to New Orleans.
The concern is that the slick eventually could disrupt traffic by shutting down water lanes or because ships will need to be cleaned at sea before docking.
And that uncertainty figures to support oil prices that already are near their highest levels since October 2008 even though there is plenty of oil in storage if disruptions occur, analysts said.
The spill also comes at the peak time for the traditional winter-to-spring rally in oil and wholesale gas prices.
Retail gasoline prices jumped 1.2 cents overnight to a national average of $2.895 per gallon. Many analysts predict gasoline will top $3 per gallon later this spring before falling.
Prices have risen 7.5 cents in the past month and are 82.7 cents higher than year-ago levels.
The Energy Information Administration will release its weekly survey of gasoline prices later Monday.
Many analysts have said the rally in oil prices from $69 a barrel in February is unwarranted given the ample supplies of crude coupled with continued low demand.
"Runaway rallies have a tradition of seizing upon any events to justify the last explosive phase of the rally," said Tom Kloza of the Oil Price Information Service.
Benchmark crude for June delivery climbed 56 cents to $86.71 a barrel on the New York Mercantile Exchange. The contract rose 98 cents to settle at $86.15 on Friday.
In other Nymex trading in June contracts, heating oil rose 3.18 cents to $2.3475 a gallon, and gasoline added 2.77 cents at $2.4271 a gallon. Natural gas gained 6.4 cents at $3.984 per 1,000 cubic feet.
In London, June Brent crude was up $1.61 at $89.05 on the ICE futures exchange.
Associated Press writers Pablo Gorondi in Budapest and Alex Kennedy in Singapore contributed to this report
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Stephen Bernard and Tim Paradis, AP Business Writers, On Monday May 3, 2010, 1:09 pm
NEW YORK (AP) -- Stocks jumped Monday after improved economic reports and a merger between United and Continental Airlines raised expectations about a recovery.
The Dow Jones industrial average rose about 150 points in afternoon trading to extend a series of sharp swings. The Dow and broader indexes all climbed more than 1 percent.
United is acquiring Continental in a stock deal worth about $3 billion. Corporate dealmaking is seen as another sign the economy is improving and companies are comfortable making commitments to expand their businesses.
Reports on manufacturing, construction spending and consumer spending boosted expectations that the economy is bouncing back.
The Institute for Supply Management said that U.S. manufacturing activity expanded at the fastest pace in nearly six years. The trade group's manufacturing index rose to 60.4 in April from 59.6 in March. Economists expected a reading of 60. Manufacturing has shown consistent signs of a rebound in recent months as production picks back up.
The Commerce Department said construction activity rose 0.2 percent in March, the first gain since October. Economists expected a drop. However, the figures for February were revised lower.-----------------
DETROIT (AP) -- The U.S. auto industry stayed on the road to recovery in April, but it eased up on the gas pedal a bit.
Ford Motor Co. saw last month's sales rise 25 percent from a year earlier, while General Motors Co. climbed 6.4 percent. Hyundai, Subaru and others also continued to see gains from last year.
All automakers report their U.S. sales on Monday, and together they're expected to outpace last April, when the industry was hurt by the economic downturn.
But the industry overall may not be able to maintain the pace of March, when big sales promotions led by Toyota Motor Corp. fueled higher sales. The Japanese automaker needed to lure buyers after suffering a series of safety recalls beginning last fall.
As buyers' expectations for even better deals grew, demand slowed from March and some automakers eased up on promotions.
Auto research website Edmunds.com says incentives fell an average of 5 percent in April as the luster wore off some of the deals and automakers tried to pull back on spending. But there were still were good bargains. Honda Motor Co. spent a record $1,787 per vehicle, while Toyota spent $2,498, down $245 from record-high levels in March. GM spent $3,273 per vehicle, although that was skewed by high incentives on the brands it is discontinuing.
GM said it spent $100 less per vehicle in April than in March.
"We'll be judicious with our incentives," said Steve Carlisle, GM's new vice president of sales. "We'll be competitive but not foolish."
After taking out brands that GM is phasing out or selling, GM sales rose 20 percent from April of last year. GM's four remaining brands are Chevrolet, Buick, GMC and Cadillac.
The Detroit-based automaker saw strong sales of several new products, including the Chevrolet Camaro, Chevrolet Equinox, Buick LaCrosse and GMC Terrain. Full-size pickup truck sales rose 8.4 percent, an indicator that the construction business is in recovery.
April was the fifth month in a row that Ford posted an increase of 20 percent or more compared with the same month in the prior year.
The Dearborn, Mich.-based automaker's pickup sales were particularly strong. Ford said F-Series sales jumped 42 percent thanks to the new Super Duty truck. SUV sales rose 33 percent, led by the Escape and Explorer. Car sales rose 10 percent.
Korean automaker Kia Motors Corp.'s April U.S. sales rose 17 percent on strong demand for its newly released Sorento crossover and Forte sedan. Hyundai's sales increased 30 percent on rising demand for the new Sonata midsize sedan.
Subaru's U.S. sales soared 48 percent the back of its Outback small wagon, which doubled its sales from April of last year. Crossovers are SUVs built on sedan bodies and combine elements of both vehicles.
GM's Carlisle said his company's performance is consistent with a slow and steady economic recovery. The automaker stuck with its forecast of total U.S. light vehicle sales of 11.2 million to 11.7 million for the year.
That's better than last year's 10.4 million, but far below the peak of more than 17 million in 2000.
Consumer spending rose 0.6 percent in March, the largest amount in five months. Yet the increase was financed out of savings. Incomes rose only slightly. Factory activity in April grew at the fastest pace in nearly six years.
AP Auto Writer Dan Strumpf in New York contributed to this report
Analysts said Monday oil prices are not being driven by the spill for now.
Instead they credit economic news -- improving manufacturing, construction and consumer spending figures -- along with a stronger stock market for driving prices higher.
"It just lends more credence that the economy is on the rebound," oil analyst and trader Stephen Schork said.
To this point, supplies have not been interrupted. Ships have been able to go around the slick to make it to the Southwest Pass. The pass is a vital area where oil and other products make their way to the Mississippi River on the way to New Orleans.
The concern is that the slick eventually could disrupt traffic by shutting down water lanes or because ships will need to be cleaned at sea before docking.
And that uncertainty figures to support oil prices that already are near their highest levels since October 2008 even though there is plenty of oil in storage if disruptions occur, analysts said.
The spill also comes at the peak time for the traditional winter-to-spring rally in oil and wholesale gas prices.
Retail gasoline prices jumped 1.2 cents overnight to a national average of $2.895 per gallon. Many analysts predict gasoline will top $3 per gallon later this spring before falling.
Prices have risen 7.5 cents in the past month and are 82.7 cents higher than year-ago levels.
The Energy Information Administration will release its weekly survey of gasoline prices later Monday.
Many analysts have said the rally in oil prices from $69 a barrel in February is unwarranted given the ample supplies of crude coupled with continued low demand.
"Runaway rallies have a tradition of seizing upon any events to justify the last explosive phase of the rally," said Tom Kloza of the Oil Price Information Service.
Benchmark crude for June delivery climbed 56 cents to $86.71 a barrel on the New York Mercantile Exchange. The contract rose 98 cents to settle at $86.15 on Friday.
In other Nymex trading in June contracts, heating oil rose 3.18 cents to $2.3475 a gallon, and gasoline added 2.77 cents at $2.4271 a gallon. Natural gas gained 6.4 cents at $3.984 per 1,000 cubic feet.
In London, June Brent crude was up $1.61 at $89.05 on the ICE futures exchange.
Associated Press writers Pablo Gorondi in Budapest and Alex Kennedy in Singapore contributed to this report
------------------
Stephen Bernard and Tim Paradis, AP Business Writers, On Monday May 3, 2010, 1:09 pm
NEW YORK (AP) -- Stocks jumped Monday after improved economic reports and a merger between United and Continental Airlines raised expectations about a recovery.
The Dow Jones industrial average rose about 150 points in afternoon trading to extend a series of sharp swings. The Dow and broader indexes all climbed more than 1 percent.
United is acquiring Continental in a stock deal worth about $3 billion. Corporate dealmaking is seen as another sign the economy is improving and companies are comfortable making commitments to expand their businesses.
Reports on manufacturing, construction spending and consumer spending boosted expectations that the economy is bouncing back.
The Institute for Supply Management said that U.S. manufacturing activity expanded at the fastest pace in nearly six years. The trade group's manufacturing index rose to 60.4 in April from 59.6 in March. Economists expected a reading of 60. Manufacturing has shown consistent signs of a rebound in recent months as production picks back up.
The Commerce Department said construction activity rose 0.2 percent in March, the first gain since October. Economists expected a drop. However, the figures for February were revised lower.-----------------
DETROIT (AP) -- The U.S. auto industry stayed on the road to recovery in April, but it eased up on the gas pedal a bit.
Ford Motor Co. saw last month's sales rise 25 percent from a year earlier, while General Motors Co. climbed 6.4 percent. Hyundai, Subaru and others also continued to see gains from last year.
All automakers report their U.S. sales on Monday, and together they're expected to outpace last April, when the industry was hurt by the economic downturn.
But the industry overall may not be able to maintain the pace of March, when big sales promotions led by Toyota Motor Corp. fueled higher sales. The Japanese automaker needed to lure buyers after suffering a series of safety recalls beginning last fall.
As buyers' expectations for even better deals grew, demand slowed from March and some automakers eased up on promotions.
Auto research website Edmunds.com says incentives fell an average of 5 percent in April as the luster wore off some of the deals and automakers tried to pull back on spending. But there were still were good bargains. Honda Motor Co. spent a record $1,787 per vehicle, while Toyota spent $2,498, down $245 from record-high levels in March. GM spent $3,273 per vehicle, although that was skewed by high incentives on the brands it is discontinuing.
GM said it spent $100 less per vehicle in April than in March.
"We'll be judicious with our incentives," said Steve Carlisle, GM's new vice president of sales. "We'll be competitive but not foolish."
After taking out brands that GM is phasing out or selling, GM sales rose 20 percent from April of last year. GM's four remaining brands are Chevrolet, Buick, GMC and Cadillac.
The Detroit-based automaker saw strong sales of several new products, including the Chevrolet Camaro, Chevrolet Equinox, Buick LaCrosse and GMC Terrain. Full-size pickup truck sales rose 8.4 percent, an indicator that the construction business is in recovery.
April was the fifth month in a row that Ford posted an increase of 20 percent or more compared with the same month in the prior year.
The Dearborn, Mich.-based automaker's pickup sales were particularly strong. Ford said F-Series sales jumped 42 percent thanks to the new Super Duty truck. SUV sales rose 33 percent, led by the Escape and Explorer. Car sales rose 10 percent.
Korean automaker Kia Motors Corp.'s April U.S. sales rose 17 percent on strong demand for its newly released Sorento crossover and Forte sedan. Hyundai's sales increased 30 percent on rising demand for the new Sonata midsize sedan.
Subaru's U.S. sales soared 48 percent the back of its Outback small wagon, which doubled its sales from April of last year. Crossovers are SUVs built on sedan bodies and combine elements of both vehicles.
GM's Carlisle said his company's performance is consistent with a slow and steady economic recovery. The automaker stuck with its forecast of total U.S. light vehicle sales of 11.2 million to 11.7 million for the year.
That's better than last year's 10.4 million, but far below the peak of more than 17 million in 2000.
Consumer spending rose 0.6 percent in March, the largest amount in five months. Yet the increase was financed out of savings. Incomes rose only slightly. Factory activity in April grew at the fastest pace in nearly six years.
AP Auto Writer Dan Strumpf in New York contributed to this report