Crude slips

Trade data from China fails to push prices higher

Crude prices ended lower on Monday, 14 February 2011 at Nymex. Trade data from China failed to perk up prices. Prices also slipped as recent tensions at Egypt eased down following the resignation of President Hosni Mubarak.



On Monday, crude oil futures for light sweet crude for March delivery closed lower by $0.77 (0.9%) at $84.81/barrel. Last week, crude lost 3.9%. Crude prices gained 0.9% in January. Prices have dropped 9.2% till date this year.

For the year of 2010, crude closed higher by 15%.

Trade data showed that China's imports surged 51% in January. China imported 21.8 million metric tons, or 5.13 million barrels a day, of crude oil in January. That's 27% more than last year and the third highest monthly level ever.

On last Friday, news came out that Egypt's President Hosni Mubarak has finally decided to step down.

Last week, the Organization of the Petroleum Exporting Countries and the International Energy Agency both forecast increased demand for crude oil this year. As per IEA, daily demand for oil will grow by 1.5 million barrels a day to 89.3 million barrels a day in 2011. In 2010, global oil demand rose by 2.8 million barrels a day year on year to 87.8 million barrels a day. World oil supply rose by 500,000 barrels a day in January, to 88.5 million barrels a day, on higher output from OPEC.

OPEC also saw rising worldwide demand for oil. It projected that world oil demand grew by 1.8 million barrels a day to 86.3 million barrels a day in 2010 and forecast a rise of 1.4 million barrels a day in 2011, averaging 87.7 million barrels a day.

Among other energy products on Monday, gasoline for March delivery rallied as high as $2.55 a gallon, but it came off its highs to settle up 5 cents, or 2.1%, at $2.52 a gallon, its best in three sessions.

March natural gas futures added 1 cent, or 0.4%, to $3.93 per million British thermal units.

Before FY 2010, crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. 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 closed lower by Rs 12 (0.3%) at Rs 3,893/barrel. Natural gas for February delivery closed higher by Rs 1.1 (0.6%) at Rs 178.1.