Markets Show Strength
Posted by Jim Sparrow on Wednesday, May 6th, 2009 at 5:01pm.
Crude oil futures closed above $56 per barrel Wednesday as inventory numbers indicated storage levels might be leveling off. NYMEX light sweet crude (June delivery contract) settled up $2.50 at $56.34 a barrel, while Brent crude finished $2.03 higher @ $56.15 / bbl. Today's closing price was the highest since November 14, 2008.
Natural gas futures also were up on the day, rising 27 cents (7.5%) to close at $3.88 per Million BTU. It was the largest single day gain for gas in nearly two months.
Meanwhile the Toronto stock market also rallied on the price of oil. The TSX composite rose 265.7 pts to finish the day @ 10,146.4, marking the first time since the beginning of November 2008 the market has closed above the 10,000 level. The Canadian dollar finished the day up 75 basis points at 85.78 cents US.
Jim Sparrow sells Calgary Real Estate with Royal LePage Calgary & specializes in South Calgary estate and luxury homes. Visit our website Calgary Luxury Real Estate our blog Living in Calgary or page me directly at Royal LePage Solutions 403.252.5900
3 Responses to "Markets Show Strength"
Jim what do you think raised oil prices will do to the Canadian vs US dollar? - I have noticed a trend that the dollar seems to go where the oil goes
Posted on Friday, May 8th, 2009 at 2:57 AM.
@Morgan - Even though Canadian oil is sold in US dollars, the impact of those sales on the US currency is insignificant *in terms of the much larger global picture*. Looking at it from the other side of the trade, there is a direct relationship between the price of oil AND the strength of the US dollar. Since barrels are sold in US $'s, as the value of the US currency drops, the commodity value increases. This also applies to Gold.
Posted on Friday, May 8th, 2009 at 11:58 AM.
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@Jim - Look at oil go today! Over $58/bbl now
Posted on Thursday, May 7th, 2009 at 9:01 AM.