Crude registers modest rise

Prices pare some of their intra day gains

Crude prices ended higher at Nymex on Monday, 23 November, 2009. Prices rose today as the dollar fell following some comments from a couple of Fed Presidents regarding the continuation of the ongoing stimulus.

On Monday, crude-oil futures for light sweet crude for December delivery closed at $77.56/barrel (higher by $0.11 or 0.1%). Earlier, during intra day trading, it rose to a high of $79.97.

In the currency market on Monday, U.S. dollar dropped markedly following comments from Chicago Fed President Evans that he thinks near zero interest rates will remain well into 2010. In a separate report, St. Louis Fed President Bullard shared an interest in keeping the Fed's Mortgage-Backed Securities program active beyond the first quarter of 2010. The Dollar Index dropped by nearly 0.7%.

Also on Monday, December reformulated gasoline ended nearly flat at $1.9794 a gallon. December heating oil rose slightly to $1.9799 a gallon.

December natural gas rose 4.9 cents, or 1.1%, to $4.473 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 November delivery closed higher by Rs 9 (0.25%) at Rs 3,640/barrel. Natural gas for November delivery closed marginally higher by Rs 0.1 (0.09%) at Rs 223.9/mmbtu.