Crude jumps up

Prices gain on hopes of fast economic turnaround

Crude prices ended substantially higher on Monday, 29 August 2011 at Nymex. Latest data from the Commerce Department regarding the income and spending of US consumers revived strong hopes of economic turnaround once again. U.S equities opened higher on relief that Hurricane Irene, while deadly, stopped short of creating complete havoc along the East Coast. These in turn helped crude prices rise again on hopes of higher demand of crude in coming months



On Monday, crude oil futures for light sweet crude for September delivery closed higher by $2.07 (2.4%) at $87.44/barrel. Earlier, prices rose to a high of $87.62 during intra day trading. Last week, crude gained 3.8%.

Financials sector led another broad-based bounce at Wall Street on Monday, 29 August 2011. Buying interest ahead of the open was largely bolstered by positive action in Europe, where news of consolidation in Greece's banking industry was generally regarded as a step toward a more sound banking system in the country.

The Commerce Department in US reported on Monday, 29 August 2011 that savings rate fell in July as spending rose more than income. Americans spent more money than they took in July — largely on auto purchases.

The income of U.S. workers rose 0.3% in July, but spending climbed an even faster 0.8%. The rise in spending matched the increase in February as the largest since summer 2009. Adjusted for inflation, personal spending rose 0.5% last month, compared with a less than 0.1% decline in June.

In the currency market on Monday, the dollar index, which measures the strength of the dollar against a basket of six other currencies, fell by 0.1%.

Among other energy products on Monday, gasoline for September delivery added less than 1 cent to trade at $2.94 a gallon. September heating oil rose 2 cents, or 0.5%, to $3.03 per gallon.

Natural gas for September delivery, which expires at the end of trading Monday, retreated 7 cents, or 1.8%, to $3.86 per million British thermal units.

At the MCX, crude oil for August delivery closed higher by Rs 77 (1.9%) at Rs 4,021/barrel. Natural gas for August delivery closed at Rs 177.8, lower by Rs 4.3 (2.4%).