Quotenews Stock Blog
Strong day for oil stocks
Posted 2006-10-26 By : cialis soft buy on line
We had a strong day for oil holders today as oil has popped back up above $61 a barrel to a current trading price of $61.44 gaining $2.04. A couple of factors were at play today helping push the precious crude higher.

One factor helping with today's move was the weekly inventory report from the Energy Information Administration (EIA) which showed that inventories fell 3.3 million barrels last week. This comes after a couple of weeks where reports showed inventories have been on the rise lately, and greatly contradicted the consensus estimates of a 2.6 million barrel increase. Distillates used in heating fuels were also on the decline, falling 1.4 million barrels in a sign that maybe the winter heating months are finally being felt by inventories.

There are also some more troubles playing out in Nigeria, where rebels have forced the OPEC nation to cut about 25% of their current production. Nigeria has long been troubled with militants trying to gain more political power by attacking it's oil facilities, so today's moves aren't really anything new, but do remind us how fragile that nation's oil supply really is.

And speaking of OPEC, we have been watching the eleven nation group lately as the oil cartel has been promising production cuts which many think will never come. Today it seems like OPEC may actually be following through on the production pullbacks as Iran has stepped up and let their customers know that they will be reducing the country's output by 176,000 barrels a day beginning November 1. Saudi Arabia has already pledged to trim its production by 1.2 million barrels, but traders have been reluctant to buy into that news until they could tell if the other large OPEC countries would follow suit. With Iran getting on board we could be seeing more traders now buying into that scenario.

All eyes are going to be on ExxonMobil Corp (NYSE: XOM) as they announce their quarterly earnings tomorrow before the market opens. Analyst's are expecting XOM to come in with EPS of $1.59.

Here is a look at how the major oil companies closed out today's session:

Sunoco, Inc. (NYSE:SUN): +0.8% to $67.74 up $0.56

Valero Energy Corp. (NYSE:VLO): +2.4% to $54.00 up $1.28

ExxonMobil Corporation (NYSE:XOM): +1.6% to $71.01 up $1.12

Chevron Corporation (NYSE:CVX): +1.0% to $67.58 up $0.69

BP p.l.s. ADR (NYSE:BP): +1.3% to $69.22 up $0.92

Oil Service Holders Trust (OIH): +2.4% to $137.75 up $3.25
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