Volatile crude ends higher

Prices rise as the dollar falters against counterparts

Crude prices ended higher on Tuesday, 18 August, 2009. Prices rose as US stocks rebounded today for the first time in three days. The slipping dollar was also one of the reasons for crude to end higher.

On Tuesday, crude-oil futures for light sweet crude for September delivery closed at $69.19/barrel (higher by $2.44 or 3.6%). During intra day trading, crude fell to an intra day low of $66.11/barrel and also rose to a high of $69.58/barrel. Last week, crude ended lower by 4.8%.

For the month of July, 2009, crude ended lower by a marginal 0.6%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 53% since then. Year to date, in 2009, crude prices are higher by 45.6%.

In the currency market on Tuesday, the dollar index which weighs the value of dollar against a basket of six other currencies, fell by 0.3%. The dollar gained against the Japanese yen, but edged lower against the British pound and was little changed against the euro. The greenback slipped in European trading after a survey showed German investor confidence hit its highest level in more than three years and after British inflation failed to show an expected decline.

Also at the Nymex on Tuesday, September reformulated gasoline rose 4.87 cents to end at $2.0002 a gallon and September heating oil gained 3.85 cents to finish at $1.8650 a gallon.

September natural-gas futures fell 6.70 cents to $3.096 per million British thermal units.

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 higher by Rs 98 (2.9%) at Rs 3,451/barrel. Natural gas for August delivery closed lower by Rs 1.4(0.90%) at Rs 153/mmbtu.