Oil reverses gains, ends lower

By Julianne Pepitone, staff reporter


(NEW YORK) CNNMoney.com -- Oil prices reversed gains Friday as recovery concerns persisted, despite a report showing that the U.S. economy grew last quarter at its fastest pace in more than six years.

What prices are doing: Crude oil for March delivery fell 75 cents to settle at $73.64 a barrel Friday.

oil.jpg.mkw.gif
Click the chart to view other commodity prices.

On Thursday, oil ended slightly lower at $73.64 a barrel as a selloff on Wall Street put traders on edge and the dollar strengthened.

What's driving prices: Early Friday, the government reported that the nation's gross domestic product -- the broadest measure of economic activity -- rose at a 5.7% annual rate in the fourth quarter.

That's significantly higher than the 4.7% rate analysts expected, and beat the 2.2% increase posted in the prior quarter. Stocks jumped on the news, boosting crude prices. But the gains were short-lived, and equities pared gains after the morning jump.

Crude prices fell as stocks drifted lower. Oil traders view the stock market as a leading indicator of economic growth and potential energy demand. As a result, oil prices have tended to fall in tandem with the major stock indexes.

What analysts are saying: "No matter what, people are looking for recovery to be a continuing trend," said Cameron Hanover analyst Peter Beutel. "[They] forget about GDP and will be look for additional numbers, asking, 'What's next?'"

He expects crude to trade in a range between $72.50 and $77.50 over the next week, though a continued cold weather snap could push prices slightly higher. To top of page

Just the hot list include
Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.80%3.88%
15 yr fixed3.20%3.23%
5/1 ARM3.84%3.88%
30 yr refi3.82%3.93%
15 yr refi3.20%3.23%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 25,962.44 -173.35 -0.66%
Nasdaq 7,948.56 -54.25 -0.68%
S&P 500 2,900.51 -23.14 -0.79%
Treasuries 1.56 -0.04 -2.32%
Data as of 8:25am ET
Company Price Change % Change
Comcast Corp 43.94 -0.06 -0.14%
CenturyLink Inc 11.26 0.00 0.00%
Huntington Bancshare... 12.90 -0.20 -1.53%
Coty Inc 8.81 0.00 0.00%
Marathon Oil Corp 12.62 0.00 0.00%
Data as of Aug 20

Sections

Bankrupt toy retailer tells bankruptcy court it is looking at possibly reviving the Toys 'R' Us and Babies 'R' Us brands. More

Land O'Lakes CEO Beth Ford charts her career path, from her first job to becoming the first openly gay CEO at a Fortune 500 company in an interview with CNN's Boss Files. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.