Crude climbs back

Crude ends November in a steady mode

Crude prices rose at Nymex on Monday, 30 November, 2009. Prices rose as the dollar once again fell weak following part ease of the debt crisis in Dubai over the weekend.

On Monday, crude-oil futures for light sweet crude for January delivery closed at $77.28/barrel (higher by $1.23 or 1.6%). Earlier during the day, the contract dropped to a low of $75.13. Last week, crude ended lower by 1.8%. Crude ended month of November, higher by 0.4%.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 48% since then.

In the currency market on Monday, the dollar weakened as concerns eased over Dubai's debt problem, and as upbeat economic data in the Chicago region reduced investors' appetite for the greenback.

Worries over Dubai's debt crisis eased Monday after the central bank of the United Arab Emirates said during the weekend that it will make available a special liquidity facility for banks of the city state. Dubai World, the largest corporate entity in the Persian Gulf emirate, asked creditors last Wednesday for a six-month stay on repayment of $60 billion in debts.

In economic news, as per the Chicago purchasing managers index released on Monday by the Institute for Supply Management of Chicago, more businesses in the Chicago region were expanding in November than at any time in the past 15 months.

Among other energy products, December reformulated gasoline gained 7.46 cents, or 3.9%, to $2.0008 a gallon and December heating oil added 5.59 cents, or 2.8%, to $2.0181 a gallon. Both contracts expired at the end of trading on Monday.

Also on Monday, natural gas for January delivery dropped 34.4 cents, or 6.6%, to $4.848 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 December delivery closed lower by Rs 24 (0.7%) at Rs 3,542/barrel. Natural gas for December delivery closed higher by Rs 0.9 (0.4%) at Rs 243.2/mmbtu.