Crude tops $77

IEA projects a rise in oil demand next year

Crude oil prices ended substantially higher on Tuesday, 13 July 2010 at Nymex. Prices rose as market cheered Alcoa's earning report following yesterday's close and also as IEA projected a rise in demand next year. Weak dollar also boosted prices.



On Tuesday, crude-oil futures for light sweet crude for August delivery closed at $77.15/barrel (higher by $2.2 or 2.9%). Last week, prices gained 5.5%.

For the month of June, oil prices shed 2.7%. Crude ended second quarter of CY 2010 lower by 9.3%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is higher by 6.7%.

After Monday's close, aluminum giant Alcoa reported that second quarter revenue grew by 22% surpassing expectations.

On Tuesday, the IEA said that global oil demand will climb up by 1.6% next year thereby putting total demand of oil at 87.8 million barrels a day.

On Tuesday, Moodys Investor Services downgraded Portugal's sovereign debt ratings by two notches from A1 to Aa2. This once again rekindled fears in the eurozone front and upset the recent revival in investor confidence over the global economic recovery.

In the currency market on Tuesday, the dollar index, which measures the strength of the dollar against a basket of six other currencies fell by 0.7%.

On Tuesday, reformulated gasoline for August delivery added 5 cents, or 2.7%, to settle at $2.08 a gallon. August heating oil rose 6 cents or 2.08% to $2.05 a gallon.

Also on Tuesday, natural-gas futures for August fell by 3 cents or 0.8% to $4.35 mBtu.

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

At the MCX, crude oil for July delivery closed higher by Rs 62 (1.76%) at Rs 3,586/barrel. Natural gas for July delivery closed at Rs 205.1, lower by Rs 2.9 (1.4%).