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Tuesday, August 25, 2009

Strong dollar restricts crude's gains

Natural gas finally manages to climb up

Crude prices ended higher on Monday, 24 August, 2009. Prices rose on signs of global economic recovery. But dollar's gains limited the rise in crude prices.

On Monday, crude-oil futures for light sweet crude for October delivery closed at $74.37/barrel (higher by $0.48 or 0.6%). During intra day trading, it rose to a high of $74.81. Last 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 49% since then. Year to date, in 2009, crude prices are higher by 51.1%.

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

Also at the Nymex on Monday, September reformulated gasoline gained 5.35 cents, or 2.7%, to $2.0491 a gallon and September heating oil added 1.85 cents, or 1%, to $1.9234 a gallon.

September natural-gas futures rose 11.9 cents, or 4.2%, to $2.923 per million British thermal units. Natural-gas futures fell sharply last Friday to end at a fresh seven-year low, pressured by a glut in supplies.

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

At the MCX, crude oil for September delivery closed higher by Rs 33 (0.92%) at Rs 3,616/barrel. Natural gas for September delivery closed higher by Rs 5.1 (3.2%) at Rs 162.7/mmbtu.

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