Crude ends little higher

Price rises for ninth consecutive session
Crude prices ended little higher at Nymex on Tuesday, 05 January 2010 after it pared most of its gains as dollar reversed its course. Prices also went up as traders anticipate tomorrow's weekly inventory report to show drop in crude and gasoline stockpiles.
On Tuesday, crude-oil futures for light sweet crude for February delivery closed at $81.77/barrel (higher by $0.26 or 0.3%). Yesterday, crude had settled above $81 for the first time in two months. Prices have now risen for nine consecutive sessions and have gained 13% in that stretch.
Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 45% since then.
A year before, crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
Traders are anticipating that tomorrow's weekly inventory report by energy department will show crude and gasoline stockpiles to have dropped by 0.2 million and 0.5 million barrels last week respectively.
In the currency market on Tuesday, the dollar index, which weighs the strength of dollar against the basket of six other currencies rose by almost 0.2% following disappointing home sales data. Earlier, dollar index was down by almost 0.2%.
The National Association of Realtors in US reported on Tuesday, 5 January 2009 that pending home sales plunged a seasonally adjusted 16% in November 2009 from October 2009. The pending sales index, which had risen nine months in a row before falling in November, was 15.5% higher than in November 2008. October's increase was revised higher to 3.9% from 3.7% previously reported.
Among other economic data expected for the day, the Commerce Department in US reported on Tuesday, 5 January 2009 that U.S. factory orders increased in November, 2009. Factory orders increased 1.1% in November, greater than the 0.8% expected by the market. This was the seventh increase in the past eight months.
Among other energy products on Tuesday, February gasoline rose 1 % to $2.125 a gallon and February heating oil added 0.2% to $2.1941 a gallon.
Also on Tuesday, February natural gas lost 4.2% to $5.637.
At the MCX, crude oil for January delivery closed higher by Rs 3 (0.07%) at Rs 3,769/barrel. Natural gas for January delivery closed lower by Rs 7 (2.6%) at Rs 263.6/mmbtu.