Tuesday, October 21st9.9°C
23836
22934

Crude oil rises to near $94 a barrel as US cold snap expected to boost demand

The price of oil rose to near US$94 a barrel Tuesday as unusually cold weather in the U.S. was expected to fuel demand in the world's largest market for energy.

Benchmark West Texas Intermediate crude for February delivery rose 24 cents to US$93.67 a barrel on the New York Mercantil Exchange. On Monday, the contract fell 53 cents to settle at US$93.43 a barrel.

Crude prices were bolstered by a cold snap in the U.S., the world's top oil consumer, as the use of heating oil was expected to surge.

Dangerously cold polar air broke decades-old records, spreading Tuesday from the Midwest to southern and eastern parts of the U.S. and Eastern Canada. Many cities came to a virtual standstill, with flights cancelled and schools and businesses shuttered due to the cold.

Forecasters said some 187 million people could feel the effects of the "polar vortex" by the time it spreads across the country.

Prices were also supported by continuing uncertainty about Libya's crude exports. Nearly three years after the start of the civil war that ousted Moammar Gadhafi, strikes and protests in the oil industry and conflicts between the government and regional militias have kept output at a fraction of its earlier level of around 1.5 million barrels a day.

However, even with the uncertainty in Libya, Iraq and other key oil producers, global supplies are expected to remain ample and keep crude prices under pressure.

"Despite these troubles, the supply outlook is robust," said the Kilduff Report edited by Michael Fitzpatrick. "A test of $92 will likely occur this week, with more losses to follow."

Brent crude, used to set prices for international varieties of crude, was up 62 cents at US$107.35 a barrel.

In other energy futures trading: wholesale gasoline rose 3.26 cents to US$2.678 a U.S. gallon (3.79 litres), heating oil was up 2.05 cents at US$2.959 a gallon and natural gas fell nearly a cent to US$4.30 per 1,000 cubic feet.

(TSX:ECA), (TSX:IMO), (TSX:SU), (TSX:HSE), (NYSE:BP), (NYSE:COP), (NYSE:XOM), (NYSE:CVX), (TSX:CNQ), (TSX:TLM), (TSX:COS), (TSX:CVE)

The Canadian Press


Read more Business News

23708


Recent Trending




Today's Market
S&P TSX14547.71+209.94
S&P CDNX822.2810.93
DJIA16614.81215.14
Nasdaq4419.479+103.404
S&P 5001941.28+37.27
CDN Dollar0.8913+0.0005
Gold1248.50-3.20
Oil81.97+0.01
Lumber329.70+0.10
Natural Gas3.692-0.019

 
Okanagan Companies
Pacific Safety0.100.00
Knighthawk0.01-0.005
QHR Technologies Inc1.17+0.05
Cantex0.055-0.025
Anavex Life Sciences0.192+0.001
Metalex Ventures0.045-0.005
Russel Metals33.09+0.81
Copper Mountain Mining2.17+0.18
Colorado Resources0.150.00
ReliaBrand Inc0.012+0.0009
Sunrise Resources Ltd0.060.00
Mission Ready Services0.46+0.01

 



23041

FEATURED Property
20396969 - 2213 Waddington Court
3 bedrooms 3 baths
$769,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Keep it rubber side down

This time of year, I always worry about which friends of mine will get caught going off the road in adverse weather conditions. With a little preparation most accidents can be avoided. Having won the...


Big bank predicts rate hike

Photo: Thinkstock.comThe end of record-low rates is nigh, according to one major bank, which has taken a stance and predicted when the Bank of Canada will raise its long-standing overnight rate. &ldq...


Experts share strategies in Kelowna

The third week in October is “Small Business Week”, a week dedicated to supporting local, small businesses. The week was designed to bring awareness to Canadians about the role small busin...

_



23545




Member of BC Press Council


22962