Crude ends little higher

Gains remain checked on fears of another recession

Crude prices ended little higher on Monday, 26 September, 2011 at Nymex. Though prices rose in tandem with US equities, fears of another recession hitting the economy put a brake on this rise.

Light and sweet crude for October delivery rose $0.39 (0.5%) to $80.24 a barrel on the New York Mercantile Exchange on Monday. Prices fell to a low of $77.11 and rose to a high of $80.85 during intra day trading. Last week, crude lost 9.2%. For the month of August, 2011, crude shed 7.1%.



US stocks started the session with healthy gains as participants responded to renewed buying interest in Europe, where there has been speculation that officials are preparing to take new measures in addressing the fiscal and financial problems that have plagued the region for so long.

Among economic data expected for the day, investors grappled with news from the government that sales of new U.S. homes fell 2.3% in August to an annual rate of 295,000, marking the fourth decline in a row. Sales last month dropped to the lowest level since February. After a peak at 316,000 in April, new-home sales have gradually declined. The report came in better than expected, however.

In the currency market on Monday, the dollar index, which measures the strength of the dollar against a basket of six other currencies, was trading modestly lower by 0.12%.

Among other energy products on Monday, October gasoline edged up 1 cent, or 0.6%, to $2.57 a gallon. October heating oil declined less than 1 cent, or 0.2%, to $2.79 a gallon.

Natural gas led gains, with the October contract rising 8 cents, or 2.2%, to $3.78 per million British thermal units.

At the MCX, crude oil for October delivery closed higher by $2 (0.04%) at Rs 4,004/barrel. Natural gas for September delivery closed at Rs 192.3, higher by Rs 4.5 (2.4%).