Crude registers mild losses

Prices end modestly lower as dollar heads up

Crude oil prices ended little lower on Monday, 11 October 2010 at Nymex. Prices fell as the dollar pared its initial losses. Prices also remained a bit somber following last week's employment report from the Labor Department.



On Monday, crude oil futures for light sweet crude for November delivery closed at $82.38/barrel (lower by $0.40 or 0.4%). Prices rose to high of $83.5 earlier during the day. Last week, crude gained 1.3%.

For the month of September, crude prices ended higher by 11.2%. For the third quarter, crude ended higher by 5.7%. Crude had 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 7.5%.

In the currency market on Monday, the dollar index, which weighs the strength of the dollar against a basket of six other currencies fell initially but then pared all early losses and ended 0.3% higher.

The Labor Department in US reported on last Friday, 07 October 2010 that the number of people who filed new claims for state unemployment benefits fell 11,000 to 445,000 during the week ended 2 October 2010, the lowest level since early July.

Market had expected initial claims to rise to a seasonally adjusted 455,000 in the week. Claims for last week were revised up by 3,000 to 456,000. The four-week average decreased by 3,000 to 455,750. A more accurate gauge of employment trends is the four-week average of initial claims, which is less volatile than the weekly number.

Among other energy products on Monday, gasoline bucked the downward trend for energy products to post gains. Gasoline for November delivery added 2 cents, or 1%, to $2.17 a gallon.

Also on Monday, natural gas for November delivery declined 3 cents, or 0.8%, to $3.62 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. 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 lower by Rs 13 (0.35%) at Rs 3,672/barrel. Natural gas for October delivery closed at Rs 161.4, lower by Rs 1.1 (0.7%).