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Thursday, April 23, 2009

Crude ends marginally higher

Crude stockpiles rise more than expected for last week

Crude oil pared earlier losses and ended little higher on Wednesday, 22 April, 2009. Prices fell earlier as energy department reported more than expected build up in crude supplies for last week. But then, crude pared earlier losses as there was better than expected economic news on the housing front.

On Wednesday, crude-oil futures for light sweet crude for June delivery closed at $48.85/barrel (higher by $0.30 or 0.63%) on the New York Mercantile Exchange. Earlier in the day, it dropped to a low of $47.7. Last week, crude ended lower by 3.7%.

Crude ended March trading up 10.9%. It rallied 11.3% in the first quarter. For the month of February, crude prices had ended higher by 1.5%.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 68.8% since then. Year to date, in 2009, crude prices are higher by 6.8%. On a yearly basis, crude prices are lower by 55.6%.

EIA reported today that crude inventories increased 3.7 million barrels (against an expected 3 million barrels) to 370.6 million barrels last week for the week ended 17 April, 2009, the highest level since September 1990. U.S. refineries operated at 83.4% of their operable capacity last week, higher than a week ago but still in a low range.

EIA also reported today that gasoline inventories rose 800,000 barrels and distillate stockpiles, which include heating oil and diesel, rose 2.7 million barrels. Market had expected a decline in both gasoline and distillate inventories. Total demand for petroleum products in the past four weeks fell 6.5% from a year ago. Among them, gasoline demand fell 0.4% while distillate consumption slumped 9.4%.

In economic news, the FHFA reported today that the February House Price Index rose 0.7% month-over-month. according to the FHFA, compared to the expected decline of 0.7%. The prior reading, however, was revised downward to 1% from 1.7%.

Also at the Nymex on Wednesday, May reformulated gasoline fell 2.38 cents, or 1.7%, to $1.3906 a gallon and May heating oil dropped 1.79 cents, or 1.3%, to $1.3299 a gallon.

May natural gas futures gained 2.1 cents, or 0.6%, to $3.532 per million British thermal units.

Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.

At the MCX, crude oil for May delivery closed at Rs 2,445/barrel, lower by Rs 23 (0.93%) against previous day's close. Natural gas for April delivery closed at Rs 183.9/mmbtu, lower by Rs 1.3/mmbtu (0.7%).

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