Prices rose today due to positive economic data
across Wall Street
Crude oil prices ended higher for second straight day on
Thursday, 08 July 2010 at Nymex. Prices rose yesterday for first time in
seven sessions. Prices rose today due to positive economic data across
Wall Street, which raised hopes of higher oil demand in coming months.
On Thursday, crude-oil futures for light sweet crude for August delivery closed at
$75.44/barrel (higher by $1.37 or 1.8%). Last week, prices shed 8.5%.
For the month of June, oil prices shed 2.7%. Crude ended second
quarter of CY 2010 lower by 9.3%. For the first quarter of this year,
crude rose by 5.5%. Year to date, crude is higher by 5.7%.
In the latest weekly inventory report on oil, energy department
reported today a decline of 5 million barrels in the nation's crude-oil
inventories last week. The market had expected the draw. The EIA also
reported an increase of 1.3 million barrels for gasoline stockpiles and
an increase of 300,000 for distillates stocks.
Among economic data, the Labor Department in US reported on
Thursday, 08 July 2010 that the number of people filing first-time
claims for unemployment benefits sank 21,000 in the latest week to a
still-high 454,000, maintaining a recent see-saw pattern. Market
expected a figure around 460,000.
Separately, retailers reported mixed June sales on Thursday as
hot weather-induced buying and Memorial Day sales weren't enough to
offset declining consumer confidence
and disappointing economic reports
that have led to uneven traffic and a pull-back in spending.
Late Wednesday, the International
Monetary Fund raised its outlook
for global economic growth for
2010 and pegged its forecast for U.S. growth at 3.3%. However, the IMF's
updated estimate also warned of
looming risk coming out of Europe's debt issues.
Last week, EIA reported that it still expects global oil demand
to rise by 1.5 million barrels a day in 2010 and 2011, but that it had
originally underestimated oil consumption for 2009. Consequently, the
U.S. agency's demand forecast for 2010 and 2011 is higher than in last
month's outlook.
On Thursday, reformulated gasoline for August delivery added 3
cents, or 1.3%, to settle at $2.05 a gallon.
Also on Thursday, natural-gas futures for August delivery
declined 17 cents, or 3.6%, to $4.40 per million British thermal units.
Earlier Thursday, the EIA showed a larger-than-expected increase in
natural-gas stockpiles. The EIA reported an increase by 78 billion cubic
feet for the week ended 2 July, while market had expected an increase
of 70 to 74 billion cubic feet.
Crude ended FY 2009 higher by 78%, the highest yearly gain since
1999. It reached a high of $82 earlier in October 2009 and hit a low of
$33.98 on 12 February 2009. Crude prices had ended FY 2008 lower by
54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for July delivery closed higher by Rs 65
(1.9%) at Rs 3,540/barrel.
Natural gas for July delivery closed at Rs
207.3, lower by Rs 8.9 (4.1%).
