Crude Oil Declines on Thursday

Crude oil futures plunged on Thursday as investors were uncertain over the strong bearish sentiments in US stock markets. Most of the investors and traders held the opinion that US Federal Reserve’s latest move to prolong debt maturities would not have any impact over the US economy. Moreover China’s manufacturing data also created more negativity among investors.

Crude oil futures contract for November delivery declined more than 6 percent or $5.41 to $80.51 per barrel on the New York Mercantile Exchange on Thursday. The respective contract touched the intraday low of $79.66 barrel while its day’s high was at $85 per barrel.

The FOMC meeting on Wednesday in which the committee expressed its concerns over the sluggish growth in US economy also made investors for profit taking in commodities. Stronger US dollar also resulted in pressure for crude oil as the greenback and crude oil prices are inversely proportional.

The dollar index DXY which measures the US dollar’s performance against its major currencies gained to 78.571 on Thursday as compared to 77.089 on Wednesday’s late trading hours.

Among other commodities natural gas futures contract for October delivery fell $0.02 to $3.71 per million British thermal units in reaction to the latest inventories data. As per report of Energy Information Administration natural gas inventories increased to 89 billion cubic feet for the week ended September 16th, 2011 while analysts expected the natural gas stockpiles to surge between the range of 89 and 93 billion cubic feet.

Gasoline futures contract for October delivery fell 4 percent or $0.11 to $2.56 per gallon while heating oil futures contract for October delivery plunged 2.9 percent or $0.09 to $2.85 per gallon.

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