Crude adds more gains

Host of factors lead to rise in prices
Crude oil prices ended higher on Tuesday, 02 February 2010. Prices rose due to better than expected economic reports and as traders anticipated that this week's weekly inventory report would show a drop of crude stockpiles for last week.
Strong economic reports generally tend to push crude prices higher on anticipation of higher demand in coming months. The weak dollar further aided crude's climb today.
On Tuesday, crude-oil futures for light sweet crude for March delivery closed at $77.23/barrel (higher by $2.8 or 3.6%). Last week, crude ended lower by 2.4%. In January 2010, crude ended lower by 8.3%. On a year to date basis, crude is still lower by 4%.
Market is expecting tomorrow's weekly inventory report to show a drop of 1 million barrels for crude stockpiles and a buildup of 1.5 millions for gasoline stockpiles.
A fire at a refinery of Valero Energy of Quebec also led to higher crude price.
Among economic data expected for the day, The National Association of Realtors reported on Tuesday, 2 February 2010 that pending home sales in US rose in December 2009 after the federal tax credit was reinstated.
As per the report, the pending home sales index rose 1% in December after plunging 16.4% in November, with buyers reacting first to the expiration and then to the return of the tax credit. The index was up 10.9% compared with December 2008. In December, existing-home sales fell 16.7%.
Separately, the Commerce Department reported on Tuesday, 2 February 2010 that housing vacancies remained near record levels in the fourth quarter with 2.1 million vacant homes for sale and 4.5 million for rent. Of all housing units built since 2000, 21% were vacant.
In the currency market on Tuesday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell by almost 0.3%.
Among other energy products on Tuesday, gasoline for March delivery rallied 8.8 cents, or 4.6%, to $2.02 a gallon. Heating oil for March rose 8.5 cents, or 4.3%, to $2.03 a gallon
Also on Tuesday, natural gas for the same month rose 1.7 cents, or 0.3%, to $5.45 per million British thermal units.
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 53.5% since then. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for February delivery closed Rs 119 (3.5%) higher at Rs 3,554/barrel. Natural gas for February delivery closed higher by Rs 2.9 (1.15%) at Rs 253.5/mmbtu.