Marginal drop for crude prices

Prices drop despite a weak dollar

Oil prices ended little lower on Friday, 18 March 2011 at Nymex. Prices fell despite a weak dollar after Libyan officials announced intentions of ceasefire following the UN's decision to implement a no-fly zone over the country.



On Friday, crude oil futures for light sweet crude for April delivery closed lower by $0.35 (0.4%) at $101.07/barrel. For the week, prices closed lower by a mere 0.1%.

Crude prices gained 5.2% in February 2011 after gaining 0.9% in January.

In the currency market on Friday, the dollar index, which measures the strength of the dollar against a basket of six other currencies, weakened. The dollar index slipped by 0.5%.

Crude prices dropped as the U.N.'s Security Council adopted a resolution to impose a ban on all flights in Libya's airspace and authorize “all necessary measures” to protect civilians under threat of attack in the country, including in the rebel-controlled city of Benghazi. News that Libya's Foreign Minister announced intentions for an immediate ceasefire following the UN's decision to implement a no-fly zone over the country was also met with a positive response.

In the latest weekly inventory report, EIA reported during the week that crude oil supplies rose 1.7 million barrels for the week ended 11 March against an expected rise by 2.1 million barrels. The report also showed that gasoline supplies declined 4.2 million barrels, against expectations around a decline of 1.5 million barrels. Stocks of distillates, which include heating oil and diesel, decreased 2.6 million. Market had expected distillate stocks to be down 1.4 million barrels.

Among other energy products on Friday, gasoline for April delivery lost less than 1 cent to settle at $2.95 a gallon. That put weekly losses at 1.4%. April heating oil retreated 4 cents, or 1.3%, to $3.02 a gallon. On the week, heating oil declined 0.3%.

April natural gas overcame initial weakness to settle higher, up 1 cent, or 0.2%, to $4.17 per million British thermal units. On the week, natural gas rallied 7.2%.