Thursday, April 24th4.6°C

Oil ends with gain after drop in oil supplies, decision by Fed to taper stimulus

NEW YORK, N.Y. - The price of oil closed with a small gain Wednesday as the U.S. Federal Reserve decided to start reducing its monetary stimulus and U.S. oil supplies fell for a third straight week.

Benchmark West Texas Intermediate crude for January delivery gained 58 cents to US$97.80 a barrel on the New York Mercantile Exchange after having risen as high as US$98.01 in the morning.

The Federal Reserve decided to reduce its stimulus for the U.S. economy because the job market has shown steady improvement.

Investors had feared such a move because Fed policies have encouraged investment in risky assets like oil. But the notion of a stronger U.S. economy, and more demand for fuel, prevailed on Wednesday.

Meanwhile, the Energy Department said U.S. crude oil supplies fell by 2.9 million barrels last week. Supplies of distillate fuels like diesel fell, while gasoline supplies rose less than expected, helping to boost oil prices.

In London, the February contract for Brent crude, a benchmark for international oils, was up $1.19 to US$109.63 a barrel on the ICE Futures exchange.

In other energy futures trading on Nymex, wholesale gasoline gained five cents to US$2.70 a U.S. gallon (3.79 litres), heating oil added five cents to US$3.01 a gallon and natural gas fell four cents to US$4.25 per 1,000 cubic feet.


The Canadian Press

Read more Business News

Recent Trending

Today's Market
S&P TSX14533.39-22.58
S&P CDNX1010.986.10
S&P 5001875.39-4.16
CDN Dollar0.9071+0.0006
Natural Gas4.762+0.032

Okanagan Companies
Pacific Safety0.115+0.01
QHR Technologies Inc1.22+0.01
Anavex Life Sciences0.38-0.005
Metalex Ventures0.080.00
Russel Metals31.30+0.13
Copper Mountain Mining2.33-0.05
Colorado Resources0.27+0.01
ReliaBrand Inc0.11+0.03
Sunrise Resources Ltd0.025-0.005
Mission Ready Services0.250.00



18279244498 Trepanier Road
4 bedrooms 2 baths
more details
Click here to feature your property
Please wait... loading

On living and dying

Our ability to live beyond our years has nothing to do with medical science; we will all live longer than our physical bodies, each of us will leave behind a personal legacy made up of our deeds, our ...

Learning to flirt with the edge

With all of the adventure activities I have done and still do, I wonder sometimes if the edge still exists. The systematic approach to learning a new adventure or extreme activity combined with the r...

Time spent prospecting

How much time should you put into prospecting? The question is a bit of a puzzle. Ideally, there would be a reference book that lists, by industry, how much time you should invest in prospecting acti...


Member of BC Press Council