Monday, May 25th21.9°C
26383

Oil slips closer to $83

Oil fell Wednesday amid speculation that OPEC will leave its production quotas unchanged at this week's meeting to avoid hurting an already fragile global economy.

By early afternoon in Europe, benchmark West Texas Intermediate crude for July delivery was down 20 cents to US$83.12 a barrel in electronic trading on the New York Mercantile Exchange. The contract had risen 62 cents to settle at $83.32 in New York on Tuesday.

In London, Brent crude for July delivery was up 42 cents at US$97.56 a barrel on the ICE Futures exchange.

The Organization of Petroleum Exporting Countries is scheduled to hold its quarterly meeting Thursday against a backdrop of a 24 per cent decline in the price of crude over the last month or so. Some of the group's 12 members, such as Iran and Venezuela, will likely call on the cartel to cut output in a bid to boost prices.

However, analysts expect most of OPEC, led by Saudi Arabia, will oppose pinching supplies because the global economy is fragile. Lower oil prices should ease fuel costs, eventually freeing up consumer spending in net crude importers such as the United States, Europe and China.

"OPEC would not want to be seen to kick the global economy when it is down," analysts at Capital Economics wrote in a report.

The International Energy Agency said that while oil supplies had grown slightly in May, to 91.1 million barrels a day, several risks on the horizon, including the effect of sanctions against Iran and the possibility of resurgent growth in China, called for a cautious outlook.

"The market can clearly now be characterized as better supplied, but over-supplied looks something of a stretch, given the myriad uncertainties that lie ahead for the summer," the Paris-based IEA said in its monthly Oil Market Report released Wednesday.

The Canadian Press


Read more Business News

24910


Recent Trending




Today's Market
S&P TSX15187.40-13.36
S&P CDNX700.09-3.39
DJIA18232.02-53.72
Nasdaq5089.36-1.43
S&P 5002126.06-4.76
CDN Dollar0.8112-0.0009
Gold1204.30+1.30
Oil60.67-0.74
Lumber273.80+3.70
Natural Gas2.887-0.064

 
Okanagan Companies
Pacific Safety0.14+0.01
Knighthawk0.010.00
QHR Technologies Inc1.49+0.01
Cantex0.03-0.01
Anavex Life Sciences0.425+0.053
Metalex Ventures0.08-0.01
Russel Metals25.83+0.04
Copper Mountain Mining1.33-0.05
Colorado Resources0.105+0.005
ReliaBrand Inc0.0048-0.0049
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.17-0.00
Decisive Dividend Corporation2.20+0.60

 



26416

FEATURED Property
22471164570 Chase Road, Lake Country
5 bedrooms 3 baths
$449,000
more details
image2
Click here to feature your property
Please wait... loading


Cash stressed seniors

Photo: Thinkstock.comFor many Canadian homeowners, their house represents the biggest portion of their net worth. Now, increasing numbers of seniors are starting to recognize the hidden value of their...


Do or do not

Photo: Thinkstock.com“The optimist sees the rose and not its thorns; the pessimist stares at the thorns, oblivious of the rose.” - Kahlil Gibran Good planning is all about managing chan...


Penetrate the smokescreen

Photo: ContributedHas this ever happened to you? You’re in the middle of your second or third “good discussion” with a prospect. Everything’s going great. The prospect seems en...

_



25482

25991


Member of BC Press Council


25770