Crude takes a big leap

Supply concerns, weak dollar and mid east crisis take prices higher

Oil prices soared on Friday, 08 April 2011 at Nymex. Prices shot up as crisis in the Middle East and North Africa continued and also as the dollar turned substantially weak. A fire at an oilfield in Libya added to concerns about supplies.



On Friday, crude oil futures for light sweet crude for May delivery closed higher by $2.49 (2.3%) at $112.79/barrel. For the week, prices gained 4.5%.

For the year till date, crude prices have gained 23.5%. Crude prices gained 10% in March 2011. For the first quarter of this year, crude gained 17%.

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

In the latest weekly inventory report, the EIA reported during the week that crude-oil supplies rose 2 million barrels in the week ended 1 April. The report also showed a decrease for gasoline supplies in the order of 400,000 barrels. Stocks of distillates, which include heating oil and diesel, rose 200,000 barrels, the EIA said, compared to expectations of a rise of 600,000 barrel

Market expected that the weekly inventory report will show that crude-oil inventories were up by 1.3 million barrels for the week ended 1 April. Gasoline stocks were seen declining by 2.1 million barrels, while stocks of distillates, which include heating oil and diesel, were expected to rise 600,000 barrels.

Among other energy products on Friday, gasoline for May delivery rose 7 cents, or 2.3%, to $3.26 a gallon. Gasoline gained 3.5% on the week. May heating oil rose 11 cents, or 3.6%, to $3.32 a gallon on Friday. Heating oil soared 5.9% from last Friday, and it posted its third consecutive weekly gain.

May natural gas retreated 2 cents, or 0.4%, to $4.04 per million British thermal units on Friday. Natural-gas futures declined 7.4% this week and have closed lower for six consecutive sessions.