Crude prices rise for first time in four sessions

Traders remain focused on potential developments at Korea

Crude prices ended higher for first time in four sessions on Monday, 19 December 2011 at Nymex. Prices remained volatile but recovered from their intra day lows and ended little higher. Traders remained a bit cautious. The dollar traded in the higher range against the competing currencies for most part of the day. Trading has moved into a holiday mode, whereby volumes are lighter and price movements generally smaller. The market place did get a bit of a jolt overnight when news reports said North Korean leader Kim Jong II had died. However, the market uncertainty was not extreme.



Light and sweet crude for January delivery rose $0.35 (0.4%) to $93.88 a barrel on the New York Mercantile Exchange on Monday. Prices traded between a high of $94.42 and a low of $92.54 on Nymex Monday. Last week, crude lost 5.9%. For the month of November, oil futures gained 7.7%.

In the currency market on Monday, the Dollar Index, which weighs the strength of dollar against basket of six other currencies climbed 0.05%. The dollar rose to 11 month high mainly against the euro last week.

U.S. stocks turned lower on Monday, 19 December 2011 extending last week's losses after comments from the European Central Bank chief injected a fresh note of pessimism into the market. Stocks rolled over after failing to build on the modest gains made during the early going. The downturn was led by financials.

Draghi stressed the importance of a tighter fiscal union among European nations. But he also undercut hopes that the central bank would be more aggressive in helping struggling countries by expanding its bond purchases.

Among other energy products on Monday, January gasoline ended little changed, up less than 0.1%, at $2.49 a gallon. January heating oil closed at $2.78 a gallon, down 2 cents, or 0.7%.

January futures for natural gas fell 3 cents, or 1%, to end at $3.10 per million British thermal units.

At the MCX, crude oil for December delivery closed higher by Rs 39 (0.8%) at Rs 5,016/barrel. Natural gas for December delivery closed at Rs 165.5, lower by Rs 0.3 (0.2%).