Crude moves up

Positive economic data and ECB's comments fuel prices higher Crude prices ended higher on Thursday, 26 July 2012 at Nymex. Prices rose as the European Central Bank signaled its intention to preserve the euro. Earlier this morning, President Mario Draghi made supportive comments, which resulted in a spike in the euro, commodities and equity markets around the world. Draghi's comments came as the market is also anticipating further stimulus in the U.S. and China. Better than expected economic data at Wall Street also pushed up prices. Light and sweet crude for September delivery rose $0.42 (0.5%) to $8.39 a barrel on the New York Mercantile Exchange on Thursday. During the week, there were reports about the potential for more Federal Reserve easing or liquidity measures. This comes as Federal Open Market Committee members prepare to a two-day policy meeting next week. In the currency market on Thursday, the U.S. dollar index, which weighs the strength of the dollar against a basket of six other currencies fell by 0.75%. Among economic data expected for the day, the latest weekly initial jobless claims count totaled 353,000, which is better than the 381,000 that had been expected, on average. The latest tally is also down from the upwardly revised prior week count of 388,000. As for continuing claims, they fell to about 3.287 million from 3.300 million. Separately, durable goods orders increased in June by 1.6%, which is more than the 0.3% increase that had been expected. The stronger-than-expected increase comes on the back of an upwardly revised prior month durable goods orders data that showed a 1.3% advance. Excluding transportation related items, durable goods orders decreased in June by 1.1%, which is actually worse than the 0.1% decrease that had been broadly anticipated. However, prior month data revisions made for a more moderate rise of 0.7%. Pending home sales for June fell by 1.4%, which is worse than the 0.9% uptick that had been expected, on average. The fall also makes for a negative turn from the 5.9% increase that was experienced in the prior month. In the weekly inventory report, the Energy Information Administration reported yesterday that crude supplies rose 2.7 million for the week ended 20 July 2012. That contrasted with expectations of a decline around 250,000 barrels. The EIA also reported gasoline stockpiles up 4.1 million barrels, and inventories of distillates up 1.7 million barrels. Market had expected gasoline inventories down 750,000 barrels and distillates supplies up 1 million barrels. Among other energy products on Thursday, August gasoline rose 2 cents, or 0.8%, to $2.81 a gallon. August heating oil added 2 cents, or 0.9%, to $2.87 a gallon. Natural gas ended a seesawing session in the black. August natural gas settled 4 cents higher, or 1.1%, at $3.11 per million British thermal units. The Energy Information Administration reported an increase of 26 billion cubic feet in storages of the product for the week ended 20 July. Market had forecast a rise of between 23 billion and 27 billion cubic feet for the week. That contrasted with 48 billion cubic feet in the comparable week in 2011 and a five-year average of 61 billion cubic feet. At the MCX, crude oil for August delivery closed higher by Rs 50 (1%) at Rs 4,996/barrel. Natural gas for August delivery closed lower by Rs 0.8 (0.5%) at Rs 171.1.