Crude flirts around $80 mark

Prices rise as dollar weakens

Crude prices ended substantially higher at Nymex on Thursday, 09 November, 2009. Prices rose on concerns about tropical storm Ida. The slipping dollar also aided in rising crude prices.

On Monday, crude-oil futures for light sweet crude for December delivery closed at $79.43/barrel (higher by $2 or 2.6%). Earlier, during intra day trading, it rose to a high of $80.28.

Members of the G-20 and Treasury Secretary Geithner continue to hold the view that economic stimulus should not yet be withdrawn, which has led to considerable weakness in the U.S. dollar. In the currency market on Monday, the dollar index, which calculates the strength of the dollar against a basket of six other currencies fell by more than 1%.

Also on Thursday, December gasoline gained 5.75 cents, or 3%, to $1.9818 a gallon, while December heating oil added 5.92 cents, or 3%, to $2.0627 a gallon.

December natural gas lost 18.7 cents, or 3.9%, to $4.595 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 November delivery closed higher by Rs 71 (1.9%) at Rs 3,710/barrel. Natural gas for November delivery closed lower by Rs 2.5 (1.15%) at Rs 213.4/mmbtu.