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Friday, December 24, 2010

Crude surpasses $90

Prices cross $90 for first time in over two years 

Crude prices ended higher on Wednesday, 22 December 2010 at Nymex. Prices surpassed the $90 mark for the first time in two years. Prices got support on hopes of sustained economic recovery in the coming year and as energy department reported a steep drop in crude inventories for last week.

On Wednesday, crude oil futures for light sweet crude for January delivery closed higher by $0.66 (0.7%) at $90.48/barrel. 

For the third quarter, crude ended higher by 5.7%. Crude had 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 16.6%. 

In the latest weekly inventory data, Energy Information Administration said crude-oil inventories fell 5.3 million barrels for the week ended 17 December while gasoline inventories increased 2.4 million barrels. Distillate inventories fell 600,000 barrels. 

In the currency market on Wednesday, the dollar had a quiet day. It was down only fractionally at the close. 

The Commerce Department in US reported on Wednesday, 22 December 2010 that The U.S. economy expanded at a 2.6% pace in the third quarter, slightly faster than previously reported mainly because of a higher inventory buildup. Market had expected growth to be revised up to 3.0%.The final third-quarter report released on Wednesday incorporates data not immediately available in two earlier readings of growth in GDP. 

January gasoline futures ended up 3 cents, or 1.1%, at $2.42 a gallon. January heating oil rose 1 cent, or 0.5%, to $2.53 a gallon. 

Natural gas for January delivery gained 9 cents, or 2.3%, to $4.15 per million British thermal units. The government reports weekly inventories data on Thursday morning. 

January natural gas shed 4.2% to end at $4.06 per MMBtu, giving back all of yesterday's gains, after it sold off throughout the session. It closed just above session lows at $4.05. 

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 January closed higher by Rs 16 (0.4%) at Rs 4,100/barrel. Natural gas for December delivery closed at Rs 185.4, lower by Rs 1.3 (0.7%).
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