MUMBAI: Nymex crude oil zoomed to $120.50 per barrel after more oil installations decided to remove non-essential workers from the Gulf of Mexico region, which fall in the path of tropical strom Gustav.
The Nymex crude oil October futures was last traded at $118.87 per barrel, up $0.71, on profit-taking.
MCX crude oil September contract came off its high of Rs 5,254 per barrel, and was last traded at Rs 5,195 per barrel, up 1%.
In London, gold was last offered at $839.8/840.3 per ounce, up $11.6. While silver bounced to $13.88 per ounce, up $0.339, platinum zoomed $42 to $1,483 per ounce, up nearly 3%.
MCX gold contract for October delivery was last quoted at Rs 11,885 per 10 gram, up Rs 109. September Silver contract was last traded at Rs 20,419 per kg, up Rs 173.
Lead prices jumped to three-week high on fresh demand outlook from China. Three-month lead on the London Metal Exchange hit a high of $2,080 per tonne from $2,050 at close on Wednesday. MCX lead August contract surged to Rs 91.40 per kg, up Rs 1.05. Other counters, too, remained buoyant.
MCX coriander September contract closed the session at Rs 8,830 per 100kg, down Rs 97, on profit-taking. MCX CPO August settlement closed at Rs 376 per 10 kg, down Rs 6.80. NCDEX turemeric October contract ended the day higher at Rs 3,840 per quintal.
Updated at 1500 hrs: Nymex crude oil October contract came off early Asian highs, and was last traded at $118.76 per barrel, up $0.61. Increased fears of destruction to oil establishments in the Gulf of Mexico due to Hurricane Gustav was instrumental in crude oil futures reaching $119.25 per barrel earlier in the day. The decline in US crude oil and gasoline inventories also extended support to crude oil futures.
Following global cues, MCX crude oil September contract opened strong at Rs 5,159 per barrel. The contract hit an intra-day high of Rs 5,207 per barrel before falling to the current level of Rs 5,183 per barrel, up Rs 43. The contract has so far exchanged 6,545 lots.
In London, gold was last traded at $832/832.5 per ounce, up $3.8. Silver bounced to $13.7 per ounce, up $0.21 while platinum edged up $2 to $1,443 per ounce.
MCX gold contract for October delivery opened strong at Rs 11,789 per 10 gram, up Rs 13, tracking the overseas mood. Rupee resuming its slide against the US dollar guided the gold prices higher. The contract reached a high of Rs 11,869 per 10 gram before retracing to the current level of Rs 11,789. September Silver contract firmed up at opening to Rs 20,299 per kg. The contract was last traded at Rs 20,339 per kg, up Rs 97, after touching a high of Rs 20,435.
Agri-commodity counters continued to witnesse limited trading interest. MCX coriander September contract dropped to Rs 8,871 per 100kg, down Rs 66. MCX CPO futures, too, corrected, and was last traded at Rs 375.50 per 10 kg, down Rs 7.30. NCDEX turemeric futures were supported by short-covering. The October contract was firm at Rs 3,780 per quintal.
Updated at 0630 hrs: Oil rose on Wednesday on forecasts that Tropical Storm Gustav will intensify into a hurricane as it ploughs toward the US oil and natural gas platforms in the Gulf of Mexico.
Further support came from weekly US government inventory data that showed an unexpected drop in crude oil stockpiles in the world's top consumer.
US crude settled up $1.88 at $118.15 a barrel, adding to two days of gains. London Brent crude gained $1.59 to settle at $116.22 a barrel.
Storm tracks showed Gustav churning toward the Gulf of Mexico, and forecaster Planalytics said 85 % of US oil and natural gas production in the region could be shut in.
Companies began pulling workers off rigs as weather models showed Gustav strengthening into a hurricane before it hits the Gulf, which pumps about a quarter of US oil production and 15 % of natural gas output.
If Gustav hits the Gulf as a Category 3 hurricane it would be the biggest storm to hit the region's oil infrastructure since hurricanes Katrina and Rita in 2005.
"After 2005, when a hurricane blows in, guys tend to prepare for the worst. It's a situation where simply you don't want to be the guy caught short, because someone will be," said Steve Mosby, vice president at ADMO Energy.
Analysts said US companies could be forced to draw on oil inventories to make up for disruptions. Data from the US Energy Information Administration showed US crude stocks fell 100,000 barrels last week, against calls for a build.
Gasoline stocks fell 1.2 million barrels, less than forecasts for a 2.9 million barrel drawdown, while distillate inventories were unchanged.
Oil prices have tumbled from a record above $147 a barrel last month as high fuel prices and the wider economic problems hurt demand in the United States and Europe.
Traders were also eyeing the upcoming OPEC meeting and escalating tensions between Russia and the West after US President George W. Bush condemned Russia for recognizing breakaway regions in Georgia.
OPEC will next meet on September 9 to review output policy, and some analysts say top exporter Saudi Arabia may come under pressure from within OPEC's ranks to reduce supplies to prevent a further fall in crude prices. (Reuters) |
Published on 
Tags:
