Crudeoil Tips

Date : 06.03.2012

Crude ends marginally higher (Mar 06)

Prices remain steady following mixed economic data from across the globe

Crude prices dillydallied for the entire day but ultimately ended marginally higher on Monday, 05 March 2012 at Nymex. Prices fluctuated as negative data from Europe, China and the U.S. weighed on markets across the board. Prices rose due to a weak dollar. A lowered growth target from China and a survey showing contracting euro-zone business activity weighed on overall market momentum. 

Light and sweet crude for April delivery rose $0.02 (0.01%) to $106.72 a barrel on the New York Mercantile Exchange on Monday. Prices gained 8.7% during February 2012. 

Domestic data at Wall Street showed that factory orders pulled back in January, declining 1% after an upwardly revised 1.4% increase in December. Separately, the Institute for Supply Management's nonmanufacturing index rose to 57.3% in February from 56.8% in January. But its employment index slipped to 55.7% from 57.4%, as the price index, which measures inflation, jumped to 68.4% from 63.5% in the prior month

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Data from outside the U.S. also weighed. China cut its growth goal to 7.5% from an 8% target, and Italy and Spain stood out as the leading trouble spots as a gauge of euro-area business activity contracted in February.

In Europe, the Markit euro-zone composite purchasing managers index showed a contraction in private-sector business activity in the region and fell to 49.3 in February from 50.4 in January. The figure came in below an earlier, preliminary February estimate of 49.7. 

In the currency market on Monday, the Dollar Index, which weighs the strength of dollar against basket of six other currencies fell by almost 1.2%.

Among other traded energy products on Monday, April gasoline futures declined 1 cent, or 0.4%, at $3.26 per gallon. April heating oil was up 2 cent, or 0.5%, at $3.22 per gallon. 

April natural-gas futures extended last week's 7.8% drop, trading down 13 cents, or 5.2%, to finish at $2.36 per million British thermal units. 

At the MCX, crude oil for March delivery closed higher by Rs 37 (0.7%) at Rs 5,342/barrel. Natural gas for March delivery closed lower by Rs 5.1 (4.1%) at Rs 119.3.

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