Prices gain for first time in three sessions
Crude prices gained for today, Monday, 4 February, 2008 with mixed economic data sending mixed signals across the economy. Prices also gained as Turkish planes attacked suspected Kurdish insurgent bases.
Crude-oil futures for light sweet crude for March delivery today closed at $90.02/barrel (higher by $1.02/barrel or 1.2%) on the New York Mercantile Exchange. Prices are 53% higher than a year ago. Earlier it fell to a low of $88.7/barrel.
The Commerce Department reported today that U.S. factory orders jumped by 2.3% in December, more than expectation. Also, U.S. corporations announced 74,986 job reductions last month, up from December's 44,416 and 19% higher compared with the previous January.
Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude’s biggest yearly gain in five years.
Brent crude oil for March settlement today rose $1.03 (1.2%) to $90.47 on the London-based ICE Futures Europe exchange. The London benchmark rose 54% in FY 2007, the most since 1999 when prices more than doubled.
Natural gas rose today, erasing earlier declines, as the prices of alternative forms of energy advanced. Natural gas for March delivery rose 12.9 cents (1.7%) to settle at $7.869 per million British thermal units. Gas is 3.1% higher than a year ago.
Against this backdrop, March gasoline gained 2.83 cents at $2.3117 a gallon, and March heating oil rose 3.44 cents at $2.4833 a gallon.
Last week, Organization of Petroleum Exporting Countries decided to keep current output levels unchanged.
At the MCX, crude oil for February delivery closed at Rs 3,555/barrel, higher by Rs 58 (1.6%) against previous day’s close. Natural gas for February delivery closed at Rs 310.9/mmtbu, higher by Rs 5.7/mmtbu (1.9%).