Crude prices end lower for third straight day
Crude oil prices ended
lower for third straight day on Thursday, 16 September 2010 at Nymex.
Prices continued to stay somber due to weak set of economic data. Prices
dropped despite a weak dollar.
On Thursday, crude oil
futures for light sweet crude for October delivery closed at
$74.57/barrel (lower by $1.45 or 1.7%). Last week, crude ended higher by
2.5%.
For the month of August, crude ended lower by 8.9%. Before this,
in July, crude ended higher by 4.5%. 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 0.6%.
Oil witnessed its first monthly decline in August since May. The
month started well, with prices surpassing $82 a barrel, but soon got
derailed as key reports showed the bad times were far from over.
In the currency market on
Thursday, the dollar index, which measures the strength of the dollar
against a basket of six other currencies fell by 0.3%.
Among economic reports expected for the day, The Labor Department
in US reported on Thursday, 16 September 2010 that the number of people
who filed new claims for unemployment benefits dipped 3,000 to 450,000
in the latest week. Market had expected initial claims to rise to
460,000 in the week ended 11 September. Claims for last week were
revised up by 2,000 to 453,000. The four-week average of initial claims,
which is less volatile than the weekly number dropped 13,500 to
464,750.
Traders paid less attention to the August Producer Price Index,
which increased 0.4% after a 0.2% increase in the prior month. It was
widely expected to climb 0.3% in August. Excluding food and energy,
producer prices increased 0.1%, as expected, after a 0.2% increase in
the prior month.
In the latest weekly inventory report, the EIA reported yesterday a decrease of 2.5 million barrels of oil in the nation's crude reserves for the week ended 10 September. According to the EIA, the 357 million barrels of crude oil
currently in inventory are above average for this time of the year. The
report also showed that stockpiles of gasoline declined 700,000 barrels, and inventories of distillates, which include diesel and heating oil, decreased 300,000 barrels during the week.
Last Friday, the International Energy Agency said that it had increased its forecast for global oil demand this year by 50,000 barrels a day, while holding its forecast for next year.
Among other energy products on Thursday, reformulated gasoline for October delivery ended 4 cents lower to $1.92 a gallon.
Also on Thursday, natural gas prices
remained volatile throughout the session, but ended higher, extending
their winning streak to a fifth day. Natural gas for October delivery
added 7 cents, or 1.7%, to $4.06 per million British thermal units, its
best finish in three weeks. Prices hit an intraday low of $3.85, hurt by
a Energy Information Administration report showing an increase of 103 billion cubic feet in the nation's storages of natural gas for the week ended 10 September 2010.
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 September delivery closed lower by Rs 67 (1.9%) at
Rs 3,447/barrel. Natural gas for September delivery closed at Rs 189.1, higher by Rs 2.8
(1.5%).
