Crude kisses the $100 mark once again

Prices rise modestly higher riding on low dollar and mixed economic data

Crude prices settled higher on Tuesday, 26 July 2011 at Nymex. Mixed economic data on US home front, low dollar pushed up prices but uncertainty over USA's debt ceiling issue kept gains under check.

On Tuesday, crude oil futures for light sweet crude for August delivery closed higher by $0.89 (0.9%) at $100.09/barrel. Prices fell to a low of $97.82 during intra day trading.



Late Monday, President Barack Obama and House Speaker John Boehner touted vastly different debt-ceiling plans. The $14.3 trillion debt ceiling needs to be raised by 2 August 2011 or the government is at risk to begin defaulting on its obligations.

In the currency market on Tuesday, the dollar index, which measures the strength of the dollar against a basket of six other currencies, fell by almost 0.53%.

Among economic data expected for the day, the Commerce Department in US reported on Tuesday, 26 July 2011 that sales of new single-family homes in US fell 1.0% to an annual rate of 312,000 in June as purchases in the Northeast dropped to the lowest level since the government began tracking the data in 1973. Market had expected sales to climb to an annual rate of 325,000 on a seasonally adjusted basis. Sales for May were revised slightly lower to an annual rate of 315,000.

The Conference Board in US reported on Tuesday, 26 July 2011 that growing numbers of consumers are expecting more jobs and increased income in coming months as it reported that its consumer-confidence index rose in July.

The nonprofit organization said its consumer-confidence index increased to 59.5 in July from a downwardly revised 57.6 in June. Market was execting a marginal decline in consumer confidence in July. While consumers' expectations improved in July, their views on the present situation declined.

Among other energy products on Tuesday, August heating oil gained 2 cents, or 0.5%, to $3.12 a gallon and August gasoline advanced 4 cents, or 1.2%, to $3.16 a gallon.

August natural gas remained in the red, trading 1 cent lower at $4.37 per million British thermal units.

At the MCX, crude oil for July delivery closed lower by Rs 3 (0.06%) at Rs 4,417/barrel. Natural gas for August delivery closed at Rs 192.5, lower by Rs 2.1 (1%).