Crude shoots up

Unrest at Egypt and US economic data pull up prices

Crude prices ended considerably higher on Friday, 28 January 2011 at Nymex. Political unrest at Egypt and economic data in US took crude prices substantially higher on Friday. It was the largest one-day rise for crude price since May 2010.

On Friday, crude oil futures for light sweet crude for March delivery closed higher by $3.7 (4.3%) at $89.34/barrel. For the week, crude gained 0.3%. On a year to date basis, crude is lower by 7.5%.



For the year of 2010, crude closed higher by 15%.

Recent tensions in Egypt fueled concerns among traders that the same might spill over to neighboring countries thus hampering production in oil producing Middle East and African countries,.

In the currency market on Friday, the dollar index traded with strength for the entire day and ended 0.6% higher.

Among economic data expected for the day, the Commerce Department on Friday reported that gross domestic product rose at a 3.2% annual rate in the fourth quarter, faster than the 2.6% pace seen during the third quarter. But market had expected 3.5% growth for the fourth quarter.

Also on Friday, a report showed that the gauge of consumer sentiment dipped to 74.2 in January from 74.5 in December on concerns about rising food and fuel prices.

In the latest weekly inventory report, The Energy Information Administration reported during the week that crude-oil supplies increased 4.8 million barrels last week. That countered market expectations of a rise around 900,000 barrels. The report also showed that gasoline supplies increased 2.4 million barrels, against expectations of a 2.1 million-barrel rise. Distillate supplies decreased 100,000; they were expected to fall by 300,000.

Among other energy products on Friday, reformulated gasoline for February delivery added 8 cents, or 3.2%, to $2.46 a gallon. On the week, gasoline was flat. Upcoming March contract added 7 cents, or 3%, to $2.49 a gallon.

Natural gas for March delivery was flat at $4.32 per million British thermal units. It lost 4% in the previous session. Prices dropped 8.8% this week.