Crude ends higher

Prices rise for second straight day

Crude oil prices rose for the second straight day on Tuesday, 09 February 2010. Prices rose as the dollar slipped following conflicting news about Greece's fiscal health and on conflicting reports whether Germany will come to its rescue.

On Tuesday, crude-oil futures for light sweet crude for March delivery closed at $73.75/barrel (higher by $1.86 or 2.5%). Last week, crude ended lower by 2.3%. In January 2010, crude ended lower by 8.3%. On a year to date basis, crude is lower by 8.5%.

In the currency market on Tuesday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell by almost 0.8%. The euro advanced by almost 1% on reports that Michael Meister, deputy leader of the Christian Democratic Union/Christian Social Union in Bundestag, confirmed a rescue plan for Greece.

The dollar had risen to seven month high against its counterparts last week. Concern for the fiscal health of Greece had sent many global participants to seek safety in the U.S. dollar during recent sessions. However, speculation today that Greece could receive help from Germany gave the euro strength.

Among other energy products on Tuesday, gasoline for March rose 3.6 cents to $1.93 a gallon. Heating oil for the same month gained 5.5 cents to $1.94 a gallon.

Also on Tuesday, natural gas for March delivery fell 11 cents to $5.29 per million British thermal units.

Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 49.8% since then. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.

At the MCX, crude oil for February delivery closed Rs 72 (2.1%) higher at Rs 3,436/barrel. Natural gas for February delivery closed lower by Rs 8.3 (3.2%) at Rs 248.4/mmbtu.