Crude soars more than 9% on a single session on Friday

Prices end 18% lower on a quarterly basis Crude prices ended substantially higher on Friday, 29 June 2012 at Nymex. Prices took a big leap and witnessed the largest one day gains in terms of percentage since March 2009. Prices rose as the dollar dropped substantially and the latest euro-zone rescue deal boosted a broad range of commodity and financial markets. Light and sweet crude for August delivery rose $7.27 (9.4%) to $84.96 a barrel on the New York Mercantile Exchange on Friday. Oil gained 6.5% on the week. On the month, however, prices declined 1.8%, and the quarterly picture was yet darker. March-to-June losses reached 18%. Leaders of the 17-nation euro zone agreed rescue funds could be used for sovereign debt purchases without forcing countries to adopt extra austerity measures. Countries will also be able to recapitalize banks directly without increasing their budget deficit. A foray into stocks followed news that Eurozone officials have opened the door for Spain's banks to be directly recapitalized with bailout funds once Europe sets up a single banking supervisor. Moreover, Spain will not have to take on additional sovereign debt. Market participants were also pleased to learn of a growth package worth 120 billion euros that will be aimed at boosting the European Investment Bank's lending capacity. In the currency market on Friday, the U.S. dollar index, which weighs the strength of the dollar against a basket of six currencies fell by 1.2%. The commitment of additional funds to address precarious conditions was taken as a positive rather than as a negative with implications for fiscal conditions. In turn, the euro rallied aggressively. By session's end the euro was up 1.7% against the greenback. Among data expected at Wall Street on Friday, personal income increased in May by 0.2%, which is slightly greater than the 0.1% increase that had been widely expected. However, personal spending stayed flat, instead of increasing by 0.1% as had been broadly anticipated. Core personal consumption expenditures were up 0.1% month over month. They had been generally expected to increase by 0.2%. The June Chicago PMI reading of 52.9 came as little surprise since market had generally expected a reading of 53.0 to follow the prior month reading of 52.7. The only other item on the economic calendar was the University of Michigan's final Consumer Sentiment Survey for May. It eased down to 73.2 from the 74.1 that was posted in the preliminary Survey. Many had expected the reading to go unrevised. In the weekly inventory report, the EIA reported during the week a decline of 100,000 barrels in crude supplies for the week ended 22 June 2012. Market had expected a decline around 1 million barrels. The EIA also reported gasoline inventories up 2.1 million barrels on the week, and distillates supplies down 2.3 million barrels. Market had expected stockpiles of gasoline to rise by 300,000 barrels, and distillates to climb by 1 million barrels. Among other energy products on Friday, heating oil for July delivery advanced 14 cents, or 5.7%, to $2.70 a gallon, while July gasoline rose 11 cents, or 4.3%, to $2.73 a gallon on Friday. Both contracts expired at the end of trading on Friday. Heating oil gained 6.4% on the week, while gasoline rose 6.1% during the five-day period. However, gasoline and heating oil amassed large quarterly losses - 20% for gasoline and 15% for heating oil. They performed better on a monthly basis, but still faced declines, with gasoline down 3.5% and heating oil down 0.4%. August natural gas also gained, up 10 cents, or 3.8%, to settle at $2.82 per million British thermal units. On the week, natural gas gained 5.9%. Monthly, the product rose 17%, and advanced 3% in the quarter