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Monday, August 24, 2009

Good weekly gains for crude

Natural gas prices continue to plunge

Crude prices ended higher once again on Friday, 21 August, 2009. Prices rose following a weak dollar and also on comments from Fed Chairman that US is gradually emerging from the recession.

On Friday, crude-oil futures for light sweet crude for October delivery closed at $73.89/barrel (higher by $0.98 or 1.3%). For the week, crude ended higher by 6.1%.

For the month of July, 2009, crude ended lower by a marginal 0.6%. 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 50% since then. Year to date, in 2009, crude prices are higher by 50.5%.

In the currency market on Friday, the dollar index which weighs the value of dollar against a basket of six other currencies, fell by 0.3%. For the week, the dollar index lost 1.1%.

The National Association of Realtors in USA reported on Friday, 21 August, 2009 that resales of U.S. single-family homes and condos rose 7.2% in July to a seasonally adjusted annual rate of 5.24 million, the highest level since August, 2007.

The Energy Information Administration reported earlier during the week that crude stocks fell by 8.4 million barrels to 343.6 million barrels during the week ended 14 Aug, 2009. Market was expecting a build up to the tune of 1.5 million barrels. The EIA also reported that motor gasoline inventories fell by 2.1 million barrels and distillate stocks decreased by 700,000 barrels.

Also at the Nymex on Friday, September reformulated gasoline gained 1.34 cents to end at $1.9956 a gallon. September heating oil rose 1.97 cents to finish at $1.9049 a gallon.

September natural-gas futures fell 14.10 cents, or 4.8%, to finish at $2.804 per million British thermal units on the New York Mercantile Exchange. For the week, natural-gas prices tumbled 43.40 cents, or 13.4%. EIA reported last Thursday that working gas in storage rose 52 billion cubic feet to stand at 3,204 Bcf during the week ended 14 August. At current levels, stocks were 562 Bcf higher than last year at this time and 513 Bcf above the 5-year average.

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

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