Crude ends modestly lower

Prices slip as tensions rise in Korean region

Crude prices ended lower on Tuesday, 23 November 2010 at Nymex. Prices fell as the dollar rose and as political problems cropped up between North and South Korea. Prices also fell as the dollar ended lower.




On Tuesday, crude oil futures for light sweet crude for December delivery closed lower by $0.49 (0.6%) at $81.25/barrel. Last week, crude lost 4%.

For the month of October, crude ended higher by 1.8%. In 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 3%.

North Korea and South Korea, however, have become the latest focus of worry for investors. As per reports, the two countries exchanged artillery fire at a South Korean island near their western border. South Korea's military had gone to its highest state of alert.

On the other hand, officials from Ireland had announced during the weekend a request for financial aid from the European Union as part of an effort to sturdy its tenuous financial state. Nothing official has been put forth, but most estimates point toward a plan that will feature something on the order of 100 billion euros.

In the currency market on Tuesday, the dollar index, which weighs the strength of the dollar against a basket of six other currencies rose by 1.2%.

Among other energy products on Tuesday, December gasoline lost 2 cents, or 0.8%, to settle at $2.13 a gallon.

Also on Monday, natural-gas futures also traded modestly lower. Natural gas for December delivery retreated 1 cent, or 0.2%, to $4.26 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 November closed higher by Rs 47 (1.3%) at Rs 3,763/barrel. Natural gas for December delivery closed at Rs 203.5, higher by Rs 1.6 (0.8%).