Crude ends higher

Prices rise on back of strong economic reports

Crude prices ended higher at Nymex on Monday, 02 November, 2009. Prices rose riding on the back of better than expected economic data. Still, prices closed at lower levels compared to their intra day highs.

On Monday, crude-oil futures for light sweet crude for December delivery closed at $77.3/barrel (higher by $0.29 or 0.4%). Earlier, during intra day trading, it rose to a high of $78.66.

The Institute for Supply Management reported on Monday, 02 November, 2009 that USA's manufacturing firms expanded at the fastest pace in more than three years in October, putting this segment of the economy on what appears to be a sustainable growth path.

The Institute for Supply Management index rose to 55.7% from 52.6% in September, well above the 53% expected. It's the highest reading since April 2006. Readings over 50% in the ISM diffusion index indicate that more firms are growing than contracting.

In a separate report, the National Association of Realtors in US reported on Monday, 02 November, 2009 that pending sales of existing homes rose a seasonally adjusted 6.1% in September, the eighth consecutive increase. Buyers were rushing to beat the expiration of an $8,000 federal tax credit for first-time buyers.

In the currency market on Monday, the dollar index, which calculates the strength of the dollar against a basket of six other currencies reversed its course after dropping earlier during the day.

Also on Monday, December reformulated gasoline gained 1 cent to $1.96 a gallon and December heating oil rose 1 cent, or 0.5%, to $2.02 a gallon.

Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.