rices close at a new all time high aided by a host of factors
Crude futures rose by more than $5 at one shot today, Thursday, 26 June, 2008. A host of factors contributed to this sudden rise. First and foremost, the dollar weakened today. Then, Libya threatened to cut output and also OPEC's president said prices may reach $170 by the summer.
Crude-oil futures for light sweet crude for August delivery today closed at $139.64/barrel (higher by $5.09/barrel or 3.8%) on the New York Mercantile Exchange. It traded as high as $140.06 during intra day trading. This was an all time new closing price for crude. Last week, crude prices closed lower by 0.2%. Prices are 98% higher than a year ago. For the year, crude is up by 42% till date.
It was reported today that Libya may curb output because of a U.S. law that allows terror victims to seize assets of foreign governments as compensation. OPEC President Chakib Khelil was also reported to have said that oil may surge as high as $170 in near months on a European interest rate rise.
Yesterday, the EIA reported that U.S. crude supplies climbed by 800,000 barrels to 301.8 million for the week ended 20 June. It was the first reported rise since early May. Supplies had fallen a total of nearly 25 million in five weeks. EIA also reported that motor gasoline supplies fell 100,000 barrels to 208.8 million barrels. Distillate stocks were up 2.8 million barrels at 119.4 million barrels.
Saudi Arabia pledged last weekend that it will pump an extra 200,000 barrels a day next month to calm the oil market.
Brent crude oil for June settlement today rose $5.5 (4.1%) to $139.83 on the London-based ICE Futures Europe exchange. The London benchmark rose 54% in FY 2007, the most since 1999 when prices more than doubled.
Natural gas in New York advanced after a U.S. government report showed supplies last week gained less than forecast and as crude oil rose to a record. Natural gas for July delivery rose 35.2 cents (2.8%) to settle at $13.105 per million British thermal units. Futures have gained 75% this year. The July contract expired today.
EIA reported today that inventories advanced 90 billion cubic feet in the week ended 20 June to 2.033 trillion cubic feet.
Against this backdrop, July reformulated gasoline rose 11.7 cents to close at $3.5113 a gallon and July heating oil gained 13.4 cents to end at $3.8834 a gallon.
At the currency markets on Thursday, the dollar continued to decline, a day after the Federal Reserve left interest rates unchanged and voiced concerns about surging commodity prices, but failed to signal urgency to raise rates to curb inflation. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, was at 72.55, compared with 72.90.
The Federal Reserve yesterday sharpened its focus on inflation, saying that the upside risks to inflation have increased. Fed held its target for short-term interest rates steady at 2%.
At the MCX, crude oil for July delivery closed at Rs 5,901/barrel, higher by Rs 175 (3.1%) against previous day's close. Natural gas for July delivery closed at Rs 557.5/mmbtu, higher by Rs 6.3/mmbtu (1.1%).
Crude futures rose by more than $5 at one shot today, Thursday, 26 June, 2008. A host of factors contributed to this sudden rise. First and foremost, the dollar weakened today. Then, Libya threatened to cut output and also OPEC's president said prices may reach $170 by the summer.
Crude-oil futures for light sweet crude for August delivery today closed at $139.64/barrel (higher by $5.09/barrel or 3.8%) on the New York Mercantile Exchange. It traded as high as $140.06 during intra day trading. This was an all time new closing price for crude. Last week, crude prices closed lower by 0.2%. Prices are 98% higher than a year ago. For the year, crude is up by 42% till date.
It was reported today that Libya may curb output because of a U.S. law that allows terror victims to seize assets of foreign governments as compensation. OPEC President Chakib Khelil was also reported to have said that oil may surge as high as $170 in near months on a European interest rate rise.
Yesterday, the EIA reported that U.S. crude supplies climbed by 800,000 barrels to 301.8 million for the week ended 20 June. It was the first reported rise since early May. Supplies had fallen a total of nearly 25 million in five weeks. EIA also reported that motor gasoline supplies fell 100,000 barrels to 208.8 million barrels. Distillate stocks were up 2.8 million barrels at 119.4 million barrels.
Saudi Arabia pledged last weekend that it will pump an extra 200,000 barrels a day next month to calm the oil market.
Brent crude oil for June settlement today rose $5.5 (4.1%) to $139.83 on the London-based ICE Futures Europe exchange. The London benchmark rose 54% in FY 2007, the most since 1999 when prices more than doubled.
Natural gas in New York advanced after a U.S. government report showed supplies last week gained less than forecast and as crude oil rose to a record. Natural gas for July delivery rose 35.2 cents (2.8%) to settle at $13.105 per million British thermal units. Futures have gained 75% this year. The July contract expired today.
EIA reported today that inventories advanced 90 billion cubic feet in the week ended 20 June to 2.033 trillion cubic feet.
Against this backdrop, July reformulated gasoline rose 11.7 cents to close at $3.5113 a gallon and July heating oil gained 13.4 cents to end at $3.8834 a gallon.
At the currency markets on Thursday, the dollar continued to decline, a day after the Federal Reserve left interest rates unchanged and voiced concerns about surging commodity prices, but failed to signal urgency to raise rates to curb inflation. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, was at 72.55, compared with 72.90.
The Federal Reserve yesterday sharpened its focus on inflation, saying that the upside risks to inflation have increased. Fed held its target for short-term interest rates steady at 2%.
At the MCX, crude oil for July delivery closed at Rs 5,901/barrel, higher by Rs 175 (3.1%) against previous day's close. Natural gas for July delivery closed at Rs 557.5/mmbtu, higher by Rs 6.3/mmbtu (1.1%).
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