NEW YORK (TheStreet) -- Oil traded around $79 a barrel at midday while elsewhere reports swirled that BP (BP) will sack CEO Tony Hayward and bring up managing director Bob Dudley to lead the franchise.
Though BP wouldn't confirm its plans, instead releasing a press release saying "no final decision has been made," news outlets continued releasing a steady stream of reports citing anonymous sources saying Hayward's days at the helm were numbered. Speculation also centered on Dudley to take over, an American charged with handling the firm's day-to-day response to the Gulf spill, who also has roots firmly planted in the American south.
BP shares were rising 5.2% today, ahead of its second-quarter earnings announcement scheduled for release early Tuesday.
Meanwhile, the NYSE Arca Oil index was up 1.1% and the Philadelphia Oil Service Sector index was climbing up 0.1%. Dow components Exxon Mobil(XOM) and Chevron(CVX), which are expected to release their earnings results Thursday and Friday, respectively, were advancing 0.4% and 0.8%.
The major stock market averages were getting a boost from the home sales figures and after FedEx (FDX) pumped up its earnings outlook.
On the Nymex, the September delivery crude contract was adding 18 cents at $79.16 a barrel. Futures began getting a modest lift, but continued hugging the neutral line, after the Commerce Department said new-home sales jumped nearly 24% in June.
"Home data has been mixed, so today's number was definitely bullish in terms of consumer demand," said Hamza Khan, analyst with the Schork Group.
But on the prospect of prices, Khan said the overall uncertain data picture has left many investors on the sideline, wondering if there's enough demand to eat in to the abundance of product. "What we're most concerned about it is volume," he said. "I'm just not sure prices are being supported with enough volume."
According to multiple news accounts, prices also came under pressure in the morning as fears from Tropical Storm Bonnie evaporated.
Also on the Nymex, the August natural gas contract was declining nearly a penny to trade at $4.57 per million British thermal units. September heating oil was advancing a fraction of a penny at $2.08 a gallon, while September gasoline was off by a marginal amount at $2.12 a gallon.
