Oil plunge hits Oxy

The stock fell 4.3 percent, to $46.26, probably in response to today's sharp drop in oil prices. In trading on the NY Mercantile Exchange, oil closed at $58.32 a barrel, down $2.73. Deutsche Bank analyst Paul Sankey expects "very weak U.S. oil demand" in 2007 and forecasts that prices will average around $62 (perhaps offering a clue on gasoline prices). Oil plunged because of warmer-than-normal temps across most of the country. That means less demand for heating oil. Other local stocks: KB Home fell 4 percent, to $49.26 (maybe an aftershock to homebuilder Lennar's bad news on Tuesday); Superior Industries, the Van Nuys-based maker of aluminum wheels, gained 3.1 percent, to $19.70; J2 Global, the L.A.-based messaging and communications company, was up 4.6 percent, to $28.50; and Guess?, the L.A.-based apparel company, was up 2 percent, to $64.70. The Dow, after starting the day up over 100 points, lost most of that and finished up a little over 11 points. A not-so-cheery Fed report that raised doubts about economic growth was blamed.



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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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