Crude turns weak

Prices register first weekly loss in seven weeks

Crude prices ended lower on Friday, 18 November at Nymex. With Friday's losses, crude ended lower for first time in seven weeks. Prices dropped due to persistent problems in the Eurozone and global economic concerns.

Light and sweet crude for December delivery fell $1.41 (1.4%) to $97.41 a barrel on the New York Mercantile Exchange on Friday. The December contract, which expired at the end of trading on Friday, moved as high as $100.15 a barrel and as low as $98.01 a barrel. For the week, crude lost 1.6%. For the month of October, oil futures gained 18%. During the third quarter ending in September, crude incurred losses of 17%. It was the worst quarterly performance for crude in almost two years.



In the currency market on Friday, the Dollar Index, which weighs the strength of dollar against basket of six other currencies traded lower by 0.3%. The dollar stayed weak against the euro on Friday, following reports European officials may discuss a plan that would see the European Central Bank loan money to the International Monetary Fund to help finance bailouts.

In the weekly inventory report, the EIA reported earlier during the week a decline of 1.1 million barrels in crude supplies for the week ended 11 November 2011. Market had expected a decline around 1.5 million barrels. The EIA also reported gasoline inventories up 1 million barrels, and supplies of distillates down 2.1 million barrels.

Among other energy products on Friday, December gasoline declined 3 cents, or 1.1%, to $2.48 a gallon. On the week, gasoline lost 4.8%. Gasoline has made losses for two consecutive weeks. Heating oil for the same month declined 5 cents, or 1.6%, to $3.03 a gallon. Weekly losses for heating oil hit 4.4%.

December natural gas declined 9 cents, or 2.8%, to $3.32 per million British thermal units. Natural gas lost 7.5% this week, and it has been down for three consecutive weeks.