Prices end more than $2 higher as Bush Administration announces stimulus package
Crude prices erased all of yesterday's gains and prices rallied today, Thursday, 24 December, 2008. Prices rose today after the Bush Administration announced a stimulus package to ward off recession. Prices rose despite Energy Department announcing a rise in crude inventories for week ended 18 January, 2008.
Crude-oil futures for light sweet crude for February delivery today closed at $89.41/barrel (higher by $2.42/barrel or 2.8%) on the New York Mercantile Exchange. Prices are 61% higher than a year ago.
As per the weekly inventory report by the Energy Department, U.S. crude inventories, rose for a second week, increased to 289.4 million barrels in the week ended 18 January. Crude inventories at Cushing, Oklahoma, the delivery point for Nymex-traded crude, fell by 800,000 barrels to stand at 15.7 million barrels. Total commercial petroleum inventories, including crude, motor gasoline, heating oil, increased by 2.2 million to 972.3 million barrels last week, and were in the middle of the average range for this time of year.
EIA also reported that U.S. gasoline supplies rose by 5 million barrels in the latest week, but distillate stocks fell by 1.3 million barrels. U.S. refineries operated at 86.5% of their operable capacity last week, down from the previous week's 87.1%.
Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude's biggest yearly gain in five years.
Natural gas caps six days of slipping streak
Last Tuesday, Federal Reserve slashed its benchmark interest rate 0.75% to 3.5% after global equity markets tumbled on concern the slumping U.S. economy will drag down the growth rates of other nations. Federal Reserve's decision came as a surprise to everyone but Fed took the same as stocks markets worldwide, had been plunging on fear that US economy would be hitting a recession soon. On that day, futures touched $85.42 after the Fed announcement during intraday trading.
Brent crude oil for March settlement today rose $2.45 (2.8%) to $89.07 on the London-based ICE Futures Europe exchange. The London benchmark rose 54% in FY 2007, the most since 1999 when prices more than doubled.
Natural gas advanced today on speculation the U.S. will avoid a recession and fuel demand will increase. Gas for February delivery rose 18.1 cents (2.4%) to settle at $7.802 per million British thermal units. EIA reported today that U.S. natural-gas supplies declined by 155 billion cubic feet to stand at 2.536 trillion cubic feet in the week ended 18 January.
Against this backdrop, February heating oil gained 5.32 cents to $2.4763 a gallon and February reformulated gasoline rose 3.2 cents to $2.2828 a gallon.
Members of the OPEC left production targets unchanged at the 5 December meeting in Abu Dhabi. The group, which produces 40% of the world's oil, will review output at a 1 February, 2008 meeting in Vienna.
At the MCX, crude oil for February delivery closed at Rs 3,491/barrel, higher by Rs 42 (1.2%) against previous day's close. Natural gas for January delivery closed at Rs 308.1/mmtbu, higher by Rs 7.9/mmtbu (2.6%).
Crude prices erased all of yesterday's gains and prices rallied today, Thursday, 24 December, 2008. Prices rose today after the Bush Administration announced a stimulus package to ward off recession. Prices rose despite Energy Department announcing a rise in crude inventories for week ended 18 January, 2008.
Crude-oil futures for light sweet crude for February delivery today closed at $89.41/barrel (higher by $2.42/barrel or 2.8%) on the New York Mercantile Exchange. Prices are 61% higher than a year ago.
As per the weekly inventory report by the Energy Department, U.S. crude inventories, rose for a second week, increased to 289.4 million barrels in the week ended 18 January. Crude inventories at Cushing, Oklahoma, the delivery point for Nymex-traded crude, fell by 800,000 barrels to stand at 15.7 million barrels. Total commercial petroleum inventories, including crude, motor gasoline, heating oil, increased by 2.2 million to 972.3 million barrels last week, and were in the middle of the average range for this time of year.
EIA also reported that U.S. gasoline supplies rose by 5 million barrels in the latest week, but distillate stocks fell by 1.3 million barrels. U.S. refineries operated at 86.5% of their operable capacity last week, down from the previous week's 87.1%.
Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude's biggest yearly gain in five years.
Natural gas caps six days of slipping streak
Last Tuesday, Federal Reserve slashed its benchmark interest rate 0.75% to 3.5% after global equity markets tumbled on concern the slumping U.S. economy will drag down the growth rates of other nations. Federal Reserve's decision came as a surprise to everyone but Fed took the same as stocks markets worldwide, had been plunging on fear that US economy would be hitting a recession soon. On that day, futures touched $85.42 after the Fed announcement during intraday trading.
Brent crude oil for March settlement today rose $2.45 (2.8%) to $89.07 on the London-based ICE Futures Europe exchange. The London benchmark rose 54% in FY 2007, the most since 1999 when prices more than doubled.
Natural gas advanced today on speculation the U.S. will avoid a recession and fuel demand will increase. Gas for February delivery rose 18.1 cents (2.4%) to settle at $7.802 per million British thermal units. EIA reported today that U.S. natural-gas supplies declined by 155 billion cubic feet to stand at 2.536 trillion cubic feet in the week ended 18 January.
Against this backdrop, February heating oil gained 5.32 cents to $2.4763 a gallon and February reformulated gasoline rose 3.2 cents to $2.2828 a gallon.
Members of the OPEC left production targets unchanged at the 5 December meeting in Abu Dhabi. The group, which produces 40% of the world's oil, will review output at a 1 February, 2008 meeting in Vienna.
At the MCX, crude oil for February delivery closed at Rs 3,491/barrel, higher by Rs 42 (1.2%) against previous day's close. Natural gas for January delivery closed at Rs 308.1/mmtbu, higher by Rs 7.9/mmtbu (2.6%).
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