Crude tops $80 mark

Prices rise as crude inventory registers unexpected drop

Crude prices ended higher at Nymex on Wednesday, 04 November, 2009. Prices rose a energy department reported unexpected drop in crude inventories for last week. The weak dollar also aided in rising crude prices.

On Wednesday, crude-oil futures for light sweet crude for December delivery closed at $80.02/barrel (higher by $0.42 or 0.05%). Earlier, during intra day trading, it rose to a high of $81.1.

The EIA reported in its weekly inventory report today that crude inventories fell 4 million barrels in the week ended 30 October, 2009. The report also showed that gasoline inventories decreased 300,000 barrels during the week under review. The EIA also reported a 400,000 decline in distillate inventories, which include heating oil and diesel.

The Institute for Supply Management reported on Wednesday, 04 November, 2009 that its nonmanufacturing index fell to 50.6% from 50.9% in September.

The report showed that business conditions improved in October across a narrower group of companies in the U.S. nonmanufacturing sectors. Readings above 50% indicate more firms said business is improving than said it's worsening.

In the currency market on Wednesday, the dollar index, which calculates the strength of the dollar against a basket of six other currencies fell by 0.5%.

Also on Wednesday, December gasoline futures rose 1.3% to $2.0261 a gallon, and December heating oil added 1% to $2.0948 a gallon.

December natural-gas futures lost 1.5% to $4.847 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 22 (0.6%) at Rs 3,771/barrel. Natural gas for November delivery closed lower by Rs 5.5 (2.4%) at Rs 225.8/mmbtu.