Tuesday, November 16, 2010
Commodity Corner: Crude Oil Falls 3%
Crude oil settled at $82.34 a barrel, compared to $84.86 on Monday, as the euro weakened amid reports that the European Union seeks to counter Ireland's debt problems with a bailout. Bailing out Ireland, which is struggling with the burden of having nationalized three banks to cope with its real estate bust, could create new problems for large banks and have a chilling effect on lending elsewhere in the EU.
Crude oil peaked at $84.74 and bottomed out at $82.26.
Natural gas for December delivery also slumped Tuesday, settling roughly 2.5 cents lower at $3.82 per thousand cubic feet. According to the National Oceanic and Atmospheric Administration (NOAA), temperatures throughout the Northeast and Midwest should not be colder than normal through next week. As a result, demand for natural gas fired electricity is expected to remain at normal levels during the period.
The price of front month natural gas fluctuated from $3.78 to $3.92.
December gasoline also lost ground Tuesday, settling 3.5 cents lower to $2.16 a gallon. It traded from $2.14 to $2.20.
Posted courtesy of Rigzone.Com