Energy Sector Roundup: Wild Day for Crude

Oil Prices Soar and Swoop

Crude oil futures swung wildly, rising to a record and then tumbling as investors wrestled with whether they should put stock in Saudi Arabia's promise to boost production. Retail gas prices rose to a record $4.08 a gallon.

Light, sweet crude for July delivery fell 25 cents to settle at $134.61 on the New York Mercantile Exchange after earlier soaring to a trading record of $139.89.

With little in the way of news to explain oil's decline, analysts pointed to Saudi Arabia's weekend decision to boost production and to Tuesday's expiration of crude options for explanations.

In other Nymex trading, July gasoline futures fell 2.47 cents to settle at $3.4379 a gallon, while July heating oil futures fell 0.94 cent to settle at $3.8274 a gallon.

FBR Raises Crude Oil Price Outlook

Friedman, Billings, Ramsey raised its crude oil price outlook for 2008 to an average $115 per barrel from $90 per barrel, and to $110 per barrel next year from $85 per barrel.

"We are raising our crude oil price expectations to reflect near-term supply realities, but also near- to intermediate-term demand responses that may not have attracted as much attention as the spectacular crude prices of recent weeks," said analyst Kevin Book.

Book says there will be challenges meeting fast-growing demand in emerging markets due to underinvestment and rapid decline in mature fields.