NEW YORK (AP) — Oil soared again Tuesday as the low prices of the past few months force oil companies to slow down production in the U.S. and elsewhere.
In the morning, BP became the latest major oil company to announce it will cut exploration spending this year. Oil seemed to get a further boost in the afternoon from a run-up in the U.S. stock market.
U.S. oil rose $3.48, or 7 percent, to $53.05 a barrel, its highest closing price this year. Brent crude, a benchmark for many international oils imported by U.S. refineries, rose $3.16, or 5.8 percent, to $57.91 a barrel.
Word that BP intends to slash its capital expenditure kept oil prices rising early Tuesday. West Texas Intermediate crude was up $1.76 to $51.33 a barrel in electronic trading on the Nymex, while in London Brent jumped $2.13 to $56.88, Reuters reports.
Hit hard by low oil prices, General Electric subsidiary GE Oil & Gas was among three companies notifying the Texas Workforce Commission of plans to lay off hundreds of workers, The Wall Street Journal reports.
LONDON (AP) — Oil giant BP reported a loss Tuesday of $4.4 billion for the fourth quarter of 2014, as oil prices plunged.
The net income figure includes a $5 billion writedown on the value of BP's inventories, after the price of Brent crude, the benchmark for North Sea oil, dropped almost 50 percent last year. BP posted a profit of $1.04 billion in the fourth quarter of 2013.
NEW YORK (AP) — A late rally led by energy companies pushed U.S. stock indexes higher Monday after the market flitted between small gains and losses for most of the day.
Stocks opened higher, then moved down, then back up as investors seemed unable to make up their minds. A pair of weak reports on the U.S. economy fed the uncertainty. Oil prices ended up surging for a third straight day, and stocks of big producers jumped. All 10 industry sectors in the Standard and Poor's 500 index rose.
WASHINGTON (AP) — U.S. consumer spending slipped in December, as the pace of motor vehicle sales slowed and more Americans saved their money.
The Commerce Department said Monday that consumer spending fell 0.3 percent in December, compared to a 0.5 percent increase in November. Cheaper gasoline and fewer auto sales accounted for most of the decline.
WATFORD CITY, N.D. (AP) — High crude prices catapulted North Dakota into the top tier of the global oil market and doubled or tripled the size of once-sleepy towns that suddenly had to accommodate a small army of petroleum workers.
But now that those prices have tumbled, the shifting oil market threatens to put the industry and local governments on a collision course. Farming and ranching communities that committed to building homes, roads and schools for the swelling population are worried about how they will pay for those improvements as oil-related tax revenue evaporates.
The drop in rig count was outweighing concerns about the refinery strike as oil jumped early Monday, continuing the rally that closed out last week’s trading. U.S. benchmark crude gained $1.50 to $49.74 a barrel in volatile electronic trading on the Nymex, while in London Brent soared $2.05 to $55.04, Reuters reports.
The biofuels industry needs to evolve beyond the traditional ethanol model, taking advantage of the opportunities presented by new technology, exports and the market offered by the military as well as aviation, Agriculture Secretary Tom Vilsack told FuelFix in an interview.
When FirstEnergy subsidiary Allegheny Energy Supply decided to shut two power plants and cancel its contract to buy coal from Tunnel Ridge, it blamed government regulation beyond its control, an assertion the mining company is challenging in court, the Pittsburgh Post-Gazette reports.
Land reclamation hasn’t finished around half of the more than 47,000 inactive wells in Colorado, according to The Denver Post, which notes that although the state requires the cleanup, it does not put a time frame on it.
The flow of oil has been shut to a Hilcorp Alaska pipeline that leaked over the weekend and authorities have recovered nearly 4,000 gallons of crude and fluids, although blizzard conditions provided an extra challenge to clean up crews, KTUU reports.
There will be an appeal of a U.S. District judge’s decision not to grant class action status to a lawsuit against Exxon Mobil over bad gasoline the company distributed in Louisiana last year, The Advocate reports.
Public Service Enterprise Group Inc. says it plans to upgrade New Jersey’s gas infrastructure – including gas mains and service lines – at a cost of $1.6 billion over the next five years, The Wall Street Journal reports.
A measure to ban oil drilling -- which is going before the voters in Hermosa Beach, California Tuesday -- is the latest twist in a long history of yes-but-no attitudes toward drilling in the beachside community, The New York Times reports.
A $1.55 billion project to generate electricity from tidal force is being proposed for Swansea in Wales, with Tidal Lagoon Power envisioning a tidal lagoon that can power 155,000 homes, BBC News reports.