After increasing 2% before the markets opened, the NYMEX July Oil (CLN12.NYM) benchmark vanquished all its gains, losing 2.62%. The early spike in crude prices was reasonable because of encouraging signs out of China, as the world's second largest economy increased its importation of oil in May by 10% compared with a month earlier. Also, the $125 billion Spanish bank bailout originally created increased enthusiasm that the monetary infusion would lead investors back into Spanish government-issued bonds.
However, the Spanish bailout contentment was short-lived, as investors continued to flee from Spanish debt, causing uncertainty in a eurozone recovery and increasing the likelihood of worldwide economic slowdown. Also, an increase in United States crude production as well as Saudi Arabia's determination to increase OPEC production is causing oil prices to retreat slightly. The Dow Jones Industrials
Today's energy outlook
The Dow's integrated oil and gas components performed slightly better than the index, with Chevron
The non-Dow component EnergySolutions
RadWaste Monitor, a trade publication, reported that EnergySolutions could be splitting the company by selling its nuclear waste government-projects group. The company lost a five-year, $121.2 million contract in March, which comes on the heels of a 45% drop over the past year of the government group's revenue.
We're coming off one of the best weeks so far this year, but as we get closer to the June 17 Greek elections, volatility is sure to increase. Today showed how precarious the eurozone situation is. The Spanish banking bailout discussion was well received over the weekend, but it became discounted as more ominous troubles loom on the horizon. The international economic picture presents complex problems that can only be treated in small doses, so expect some turbulence for the foreseeable future. With increased instability expected in the market, now is a great time to check out The Motley Fool's special report describing 3 Stocks That Will Help You Retire Rich. This free report will list three remarkable companies as well as offer great advice on how to invest to secure a comfortable retirement -- get your free report now.