Crude gains

Prices gain more than $5 in just last two sessions


Crude prices rallied strongly on Monday, 07 April, 2008 as members of Organization of Petroleum Exporting Countries (OPEC) hinted that the cartel will not raise production in the coming months. Prices ended at highest level today since it had touched $112 on 17 March, 2008. Last Friday also, crude had gained more than $2. With today, crude gained more than $5 in just two sessions.

Crude-oil futures for light sweet crude for May delivery closed at $109.09/barrel (higher by $2.86/barrel or 2.7%) on the New York Mercantile Exchange. Crude prices are 77% higher on a yearly basis. For the year, crude is up by 14.7% till date. It touched a high of $111.8 on 17 March, 2008 but had slipped thereafter.

Last week, crude ended marginally higher by 60 cents as against last week’s previous close at $105.62.

As per Qatar's minister of state for energy and industry affairs, The Organization of Petroleum Exporting Countries is trying to stabilize oil prices that are being led higher by speculation and political events in producing and consuming nations.

In the currency market today, the dollar held overnight gains against most major counterparts as the U.S. stock market extended an overseas rally. The dollar index, which tracks the performance of the greenback against other currencies, gained 0.4% to 72.21.

Brent crude oil for May settlement today rose $2.24 (2.1%) to $107.14 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 rises 5% due to forecasts for cool weather in April

Natural gas futures advanced on forecasts for cool weather in April that would slow rebuilding of stockpiles. Rising crude-oil prices also pushed gas higher. Natural gas for May delivery rose 46.9 cents (5%) to $9.791 per million British thermal units.

Against this backdrop, Gasoline for May delivery settled at a record $2.7835 a gallon in New York, an increase of 2.68 cents, or 1%. Heating oil for May delivery rose 9.22 cents (3.1%) to settle at $3.0843 a gallon.

U.S. pump prices are following futures higher. As per AAA, the nation's largest motorist organization, gasoline prices, averaged nationwide, rose 1.5 cents to a record $3.339 a gallon.

Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude’s biggest yearly gain in five years.

At the MCX, crude oil for April delivery closed at Rs 4,350/barrel, higher by Rs 123 (2.9%) against previous day’s close. Natural gas for April delivery closed at Rs 391.1/mmbtu, higher by Rs 17.1/mmbtu (4.6%