Big jump in crude price at Nymex

Crude prices rise for sixth straight day

Crude prices ended higher for sixth straight day on Tuesday, 27 December 2011 at Nymex. Prices rose substantially as news hit the wires from Iran state news agency were saying that oil flow will stop from Strait of Hormuz if its sanction issues by European Union over nuclear programme continued. Partially offsetting that threat, however, were reports that Saudi Arabia said it stood ready to replace Iranian oil if supplies to Europe were halted. Nymex oil price also gained ground following a better than expected consumer confidence data at Wall Street.



Light and sweet crude for February delivery rose $1.66(1.7%) to $101.34 a barrel on the New York Mercantile Exchange on Tuesday. Last week, crude gained 6.6%. For the month of November, oil futures gained 7.7%.

In the currency market on Tuesday, the Dollar Index, which weighs the strength of dollar against basket of six other currencies fell by almost 0.3%.

Data on Wall Street showed on Tuesday a strong consumer confidence reading. The Consumer Confidence Index for December rose to 64.5 from 56.0 in the prior month. It had been expected to improve to just 58.0.

Various news reports on Tuesday said that Iran, which is facing the risk of further sanctions by the European Union over its nuclear program, has threatened to cut off shipments through the Strait of Hormuz, a key shipping route for oil tankers.

Among other energy products on Tuesday, January gasoline closed fractionally higher, up less than 0.1%, at $2.69 a gallon after an 8% rally last week. Heating oil for January delivery rose 1.8 cents, or 0.6%, to $2.91 a gallon. The contract registered a 3.2% gain last week.

Natural gas for January delivery settled at $3.11 per million British thermal units, down less than 0.1% ahead of the contract's expiration at the close of Nymex trading on Wednesday. Futures prices lost 0.6% last week.

At the MCX, crude oil for January delivery closed higher by Rs 85 (1.6%) at Rs 5,374/barrel. Natural gas for December delivery closed at Rs 169.3, lower by Rs 0.4 (0.23%).