Crude Oil Slid as Greece deal delayed, IEA Cuts Outlook (USO, UNG, FSLR, AONE, EXC, COP, EVEP, CIE, PPL, CPN)
Crude oil futures fell for the first day in past four days after The International Energy Agency trimmed its global oil demand growth outlook for 2012. Moreover, bearish signal is also from European finance ministers, who unexpectedly set conditions for Greece to meet before approving another round of funding.
West Texas Intermediate crude for March delivery slumped $1.50 or 1.50% to trade at $98.32 a barrel, off session low of $97.32 and high of $99.95.
The morning, The International Energy Agency lowered its outlook for global oil demand growth in 2012 by 300K barrels a day to 800,000 barrels a day, stating lowered projections for global economic growth. Global GDP growth is revised down to 3.3% for 2012, from the 4.0% level assumed since September, the agency noted.
Additionally, finance ministers from the other 16 eurozone states spooked the markets as they insisted that Greece had to save an extra euro325 million ($430 million), pass the cuts through a restive parliament and guarantee in writing that they will be implemented even after planned elections in April.
United States Oil Fund LP (ETF) (NYSE:USO) fell 0.41 (-1.07%) to $37.91. United States Natural Gas Fund, LP (NYSE:UNG) added 0.03 (0.57%) to $5.27.
First Solar, Inc. (Public, NASDAQ:FSLR) shares slumped 8.62% to $44.80 after analyst at Collins Stewart downgraded the stock to neutral from buy, stating the company faces risks around the permitting of a facility in California. Last week, the company said it has until Feb. 24 to get a loan payment from the Department of Energy to continue building the 230-megawatt Antelope Valley Solar Ranch.
Exelon Corporation (Public, NYSE:EXC) is down 0.42% after First Solar would repurchase Antelope Valley Solar Ranch from the company for $75 million if the loan payment doesn’t come through.
ConocoPhillips (Public, NYSE:COP) climbed about 1% to $72.24 after analyst at Deutsche Bank upgraded the stock to Buy from Hold on valuation, stating the company’s leveraged exposure to oil and refining markets.
A123 Systems, Inc. (Public, NASDAQ:AONE) shares rebounded 8% after slumping over 14% in the previous trading session on downgrade from Wunderlich. This morning, the company said that it has reached an agreement with a U.K. grid operator to supply six lithium ion storage systems.
EV Energy Partners, L.P. (Public, NASDAQ:EVEP) fell 1.10% to $69.91 after it priced 3.5 million common units at $67.95 in an offering to the public.
Cobalt International Energy, Inc. (Public, NYSE:CIE) is the biggest gainer and zoomed about 39% to $33.18 after the company showed strong test results at an oil discovery off Angola, which topped expectations and boost confidence in its West African pre-salt exploration prospects.
PPL Corporation (Public, NYSE:PPL) rose 1.73% to $28.19 after the company said that it earned 70 cents a share on revenue of $4.22 billion in its fourth quarter, ahead of analysts’ estimates of 62 cents a share on revenue of $3.04 billion.
Calpine Corporation (Public, NYSE:CPN) also climbed 1.75% to $15.66 after the company said that it had a net loss of 3 cents a share on revenue of $1.46 billion in its fourth quarter.
