Crude at highest levels since September 2008

Prices continue to soar as Libyan turmoil continues

Oil prices continued to soar on Monday, 07 March 2011 but finally settled well below its intra day high at Nymex. Prices continued to climb up as turmoil in the Middle East, especially in Libya, an important oil port, continued.



On Monday, crude oil futures for light sweet crude for April delivery closed higher by $1.02 (1%) at $105.44/barrel. Prices touched a high of $106.95 during intra day trading. Last week, prices closed higher by 6.7%. This was the highest close for crude since September 2008.

Crude prices gained 5.2% in February 2011 after gaining 0.9% in January. Prices have gained 15% till date this year.

Libya remains the scene of fighting between pro and antigovernment forces, with each side claiming control of a major oil port on Sunday

US stocks slipped substantially at Wall Street on Monday as moods were dampened by higher oil prices which triggered fears that rising crud price will deter the recovery of the economy.

In the currency market on Monday, the dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose moderately initially but ultimately ended with 0.1% gain.

Among other energy products on Monday, gasoline futures had wavered between small gains and losses but closed lower. The April contract lost 4 cents, or 1.4%, to end at $3 a gallon. Year-to-date, gasoline futures are up 22%. Heating oil for April delivery turned lower as floor trading approached its end. The contract lost 2 cents, or 0.8%, to settle at $3.07 a gallon.

Natural gas for April delivery added 12 cents, or 3.1%, to $3.93 per million British thermal units.

At the MCX, crude oil for March closed higher by Rs 38 (0.8%) at Rs 4,769/barrel. Natural gas for March delivery closed higher by Rs 3.8 (2.2%) at Rs 175.3.