Bloomberg News

U.S. Stocks Pare Gains as Oil Rallies

March 01, 2012

An electric crude oil pumping unit stands on a hill overlooking Williston, North Dakota. Photographer: Daniel Acker/Bloomberg

An electric crude oil pumping unit stands on a hill overlooking Williston, North Dakota. Photographer: Daniel Acker/Bloomberg

U.S. stocks pared gains as oil rallied above $110 a barrel for the first time since May amid reports of a pipeline explosion in Saudi Arabia.

The Standard & Poor’s 500 Index rose 0.4 percent to 1,370.43 at 3:38 p.m. in New York after climbing as much as 0.8 percent earlier. The Dow Jones Industrial Average was little changed, wiping out a 81 point rally. Crude surged 2.5 percent to $109.73 in electronic trading and jumped as high as $110.55. Treasuries remained lower, with the yield on the 10-year note climbing five basis points to 2.03 percent.

Analysts including Hamza Khan of Schork Group and John Kilduff of Again Capital LLC attributed the surge in oil prices to speculation that a pipeline in Saudi Arabia had exploded. Earlier gains came amid a rally in financial shares as borrowing costs declined for Spain and France, while government data showed that jobless claims matched a four-year low.

To contact the reporter on this story: Michael P. Regan in New York at mregan12@bloomberg.net

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net


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