Prices drop by more than 28% during the third quarter
Crude oil prices managed to climb back to the $100 level on Tuesday, 30 September, 2008 but registered substantial losses for the third quarter that ended today. Prices rose today after U.S. lawmakers said they intend to salvage a $700 billion bank-rescue package that may avert an economic slowdown.
Crude-oil futures for light sweet crude for November delivery closed at $100.64/barrel (higher by $4.27 or 4.4%) on the New York Mercantile Exchange. Prices fell to a low of $97.8 during intra day trading. Yesterday, prices had slipped by almost $11 on overall global meltdown. Prices reached a high of $147 on 11 July but have dropped 32% since then.
For the third quarter of the year that ended today, crude prices ended lower by 28%. This was the biggest quarterly drop since 1991. Prior to today, crude prices had gained 38% in the second quarter of this year. It was the biggest quarterly increase in nine years. For the month of September, prices registered drop of 13%. For the year, prices are still up by 5.2%.
Investors are concerned that a prolonged credit crisis would further undermine an already waning demand for energy as global growth slows down.
At the currency markets on Tuesday, the dollar climbed the most ever against the 15-nation European currency as France and Belgium led a state-backed rescue of Dexia SA, the world's biggest lender to local governments. Major U.S. equity indexes rebounded from the worst plunge since October 1987 after lawmakers sought to repair a $700 billion financial rescue plan voted down yesterday.
Against this background, November reformulated gasoline rose 9.6 cents to finish at $2.4577 a gallon, but it was 18.4% lower for the month. November heating oil gained 10.6 cents to end at $2.8947 a gallon, losing 9% for the month.
Natural gas futures advanced on speculation U.S. lawmakers will pass a $700 billion government bailout plan for the financial industry, preventing a further weakening of the economy and preserving energy demand. Natural gas for November delivery gained 21.7 cents (3%) to settle at $7.438 per million British thermal units. It was 6.4% lower for the month. Gas fell 44% in the third quarter, the first decline since the second quarter of 2007 and the biggest quarterly drop since the three months ended March 2001.
At the MCX, crude oil for September delivery closed at Rs 4,744/barrel, higher by Rs 106 (2.3%) against previous day's close. Natural gas for October delivery closed at Rs 354.5/mmbtu, higher by Rs 10.2/mmbtu (2.9%).
Crude oil prices managed to climb back to the $100 level on Tuesday, 30 September, 2008 but registered substantial losses for the third quarter that ended today. Prices rose today after U.S. lawmakers said they intend to salvage a $700 billion bank-rescue package that may avert an economic slowdown.
Crude-oil futures for light sweet crude for November delivery closed at $100.64/barrel (higher by $4.27 or 4.4%) on the New York Mercantile Exchange. Prices fell to a low of $97.8 during intra day trading. Yesterday, prices had slipped by almost $11 on overall global meltdown. Prices reached a high of $147 on 11 July but have dropped 32% since then.
For the third quarter of the year that ended today, crude prices ended lower by 28%. This was the biggest quarterly drop since 1991. Prior to today, crude prices had gained 38% in the second quarter of this year. It was the biggest quarterly increase in nine years. For the month of September, prices registered drop of 13%. For the year, prices are still up by 5.2%.
Investors are concerned that a prolonged credit crisis would further undermine an already waning demand for energy as global growth slows down.
At the currency markets on Tuesday, the dollar climbed the most ever against the 15-nation European currency as France and Belgium led a state-backed rescue of Dexia SA, the world's biggest lender to local governments. Major U.S. equity indexes rebounded from the worst plunge since October 1987 after lawmakers sought to repair a $700 billion financial rescue plan voted down yesterday.
Against this background, November reformulated gasoline rose 9.6 cents to finish at $2.4577 a gallon, but it was 18.4% lower for the month. November heating oil gained 10.6 cents to end at $2.8947 a gallon, losing 9% for the month.
Natural gas futures advanced on speculation U.S. lawmakers will pass a $700 billion government bailout plan for the financial industry, preventing a further weakening of the economy and preserving energy demand. Natural gas for November delivery gained 21.7 cents (3%) to settle at $7.438 per million British thermal units. It was 6.4% lower for the month. Gas fell 44% in the third quarter, the first decline since the second quarter of 2007 and the biggest quarterly drop since the three months ended March 2001.
At the MCX, crude oil for September delivery closed at Rs 4,744/barrel, higher by Rs 106 (2.3%) against previous day's close. Natural gas for October delivery closed at Rs 354.5/mmbtu, higher by Rs 10.2/mmbtu (2.9%).
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