Crude ends marginally lower

Prices pare most of their early losses as stocks gain

Crude oil prices ended marginally lower on Tuesday, 28 September 2010 at Nymex. Prices started the day in the red but then prices rose in tandem with US stocks. Prices rose due to weak dollar. But weak consumer confidence data pushed crude price back in the red.



On Tuesday, crude oil futures for light sweet crude for November delivery closed at $76.18/barrel (lower by $0.34 or 0.4%).

For the month of August, crude ended lower by 8.9%. Before this, in July, crude ended higher by 4.5%. 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 1.6%.

Oil witnessed its first monthly decline in August since May. The month started well, with prices surpassing $82 a barrel, but soon got derailed as key reports showed the bad times were far from over.

In the currency market on Tuesday, the dollar index, which weighs the strength of the dollar against a basket of six other currencies closed lower by 0.5%.

The dollar extended losses against the euro and other major currencies after the Conference Board said its consumer-confidence index hit its lowest level since February. It dropped to a seven-month low figure of 48.5.

Among other energy products on Tuesday, gasoline for November delivery tracked crude oil lower, however, losing less than a penny to $1.94 a gallon. Gasoline has ended close to $1.94 a gallon for the past three sessions.

Also on Tuesday, natural gas for November delivery rose 3 cents, or 0.9%, to $3.95 per million British thermal units. That's natural gas best finish in three sessions.

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 October delivery closed higher by Rs 29 (0.84%) at Rs 3,478/barrel. Natural gas for October delivery closed at Rs 181.3, higher by Rs 3.3 (1.8%).