Crude edges up

Prices rise as dollar weakens

Crude price ended higher on Monday, 20 July, 2009. Prices registered gains today due to the weak dollar.

On Monday, crude-oil futures for light sweet crude for August delivery closed at $63.98/barrel (higher by $0.42 or 0.6%). Earlier during the day, it hit a high of $64.9. Last week, crude ended higher by 6.1%.

For the month of June, 2009, crude ended higher by 5.5%. In May, crude had registered the largest monthly gain in a decade rising 30%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 56% since then. In July, 2009, it has dropped by 8% till date. Year to date, in 2009, crude prices are higher by 43.1%.

In the currency market on Monday, the U.S. dollar index, a six-currency gauge of the greenback's value, fell to a six-week low on speculation that European and U.S. economic reports this week will show the global recession is easing. The dollar index slipped by 1.1% today.

Last week, in its latest monthly report, OPEC reported that global oil demand will fall by 1.6 million barrels a day this year from a year ago. It also said the cartel increased its production in June for a third straight month. As per OPEC, oil demand will fall this year as the global economy is expected to contract 1.4%. The cartel, which accounts for about one third of the world's oil production, also said its oil production in June rose to 28.441 million barrels a day.

Also at the Nymex on Monday, August reformulated gasoline gained 2 cents to $1.79 a gallon and August heating oil rose 5 cents to $1.69 a gallon.

August natural gas futures gained 2 cents to $3.69 per million British thermal units.

Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.

At the MCX, crude oil for August delivery closed unchanged at Rs 3,149/barrel. Natural gas for August delivery closed at Rs 185.8/mmbtu, lower by Rs 2.9/mmbtu (1.53%).