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Friday, July 31, 2009

Crude claims back yesterday's losses

Prices rise as US stocks cheer economic data

Crude prices ended higher on Thursday, 30 July, 2009. Prices rose today in synchronization with US stocks which welcomed the news of modest rise in initials claims for last week. The weak dollar was also responsible for the rise.

On Thursday, crude-oil futures for light sweet crude for September delivery closed at $66.94/barrel (higher by $3.59 or 5.7%). Last week, crude ended higher by 7.1%.

For the month of June, 2009, crude ended higher by 5.5%. In May, crude had registered the largest monthly gain in a decade rising 30%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 51% since then. In July, 2009, it has dropped by 4.6% till date. Year to date, in 2009, crude prices are higher by 41.7%.

US stocks registered good gains today after Labor Department reported that initial claims rose last week but the trend fell and fewer people were continuing to collect unemployment checks. The first-time claims for state jobless benefits crept up in the latest week but ws in line with expectations. Initial weekly jobless claims rose by 25,000 to a seasonally adjusted 584,000 during the week ended 25 July, 2009.

EIA reported yesterday that crude supplies rose by 5.1 million barrels to stand at 347.8 million barrels during the week ended 24 July, 2009. The EIA also reported that motor gasoline inventories fell by 2.3 million barrels and distillate supplies rose by 2.1 million barrels last week.

Also at the Nymex on Thursday, August reformulated gasoline rose 13.61 cents, or 7.3%, to $1.9911 a gallon and August heating oil gained 9.72 cents, or 5.8%, to $1.7685 a gallon.

September natural-gas futures rose 21.5 cent, or 6.1%, to $3.763 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 August delivery closed higher by Rs 138 (4.45%) at Rs 3,234/barrel. Natural gas for August delivery closed at Rs 181.7/mmbtu, higher by Rs 9.8/mmbtu (5.7%).

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