Friday, March 6th3.0°C
25326
22746

Crude oil gains on China central bank credit action; upgraded demand forecast

The price of oil rose Tuesday after China's central bank injected credit into its financial system to offset concerns about slower economic growth and experts raised their forecast for global crude demand.

West Texas Intermediate crude for February delivery rose 62 cents to close US$94.99 a barrel on the New York Mercantile Exchange. The February contract expires later Tuesday and most trading has moved to the March contract, which was up 38 cents at US$94.97.

Meanwhile, natural gas futures rose 11 cents, or 2.5 per cent, to US$4.43 per thousand cubic feet as a swirling snowstorm clobbered the U.S. mid-Atlantic region and the Northeast on Tuesday.

The continued cold weather means greater demand for natural gas to keep homes warm.

Meanwhile, the Chinese central bank announced late in the day it would inject additional money into the financial system, reducing fears of a credit squeeze. That helped to offset lingering concerns after Monday's report of slowing economic growth in China.

Also, the International Energy Agency raised its demand forecast for 2014 by 90,000 barrels a day and now sees global appetite for crude reaching 92.5 million barrels a day.

Though it remains fragile, demand from Western industrialized countries is set to rise for the first time since 2010, the Paris-based IEA said, while also noting that domestic crude production in the United States in 2013 was 990,000 barrels a day higher than a year earlier.

This increase was "one of the largest annual gains on record for any country" and helped offset the impact of supply declines at other sources, like Libya and Iran, the IEA said.

"Global oil demand growth appears to have gradually gained momentum in the last 18 months, driven by economic recovery in the developed world," the IEA said in its monthly report on the oil market.

Brent crude, used to set prices for international varieties of crude, gained 38 cents to US$106.73 on the ICE exchange in London.

In other energy futures trading on Nymex, wholesale gasoline was flat at US$2.62 a U.S. gallon (3.79 litres) and heating oil fell one cent to US$3.01 a gallon.

(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

25194


Recent Trending




Today's Market
S&P TSX14952.50-150.61
S&P CDNX688.79-8.13
DJIA17856.78-278.94
Nasdaq4927.371-55.439
S&P 5002071.26-29.78
CDN Dollar0.7921-0.0089
Gold1163.70-32.2001
Oil51.61-0.94
Lumber282.70-4.30
Natural Gas2.849+0.008

 
Okanagan Companies
Pacific Safety0.125-0.005
Knighthawk0.010.00
QHR Technologies Inc1.55-0.10
Cantex0.035-0.005
Anavex Life Sciences0.18-0.004
Metalex Ventures0.0450.00
Russel Metals24.21-0.06
Copper Mountain Mining1.19-0.05
Colorado Resources0.14+0.01
ReliaBrand Inc0.0065-0.0015
Sunrise Resources Ltd0.045-0.005
Mission Ready Services0.22-0.005

 



25103

FEATURED Property
2221498Sonoma Pines
3 bedrooms 3 baths
$579,900
more details
Click here to feature your property
Please wait... loading


How to price: Step Four

In 2008 Self Counsel Press published my book - Pricing Strategies for Small Business. The purpose of the book was to make available to the owners of small companies, pricing techniques used by sophist...


Refinance your mortgage?

Canadian Mortgage rates are low and could be dropping down in time for the spring market following a drop in the Bank of Canada Rate on January 21 by 1/4% which will save new buyers and those with mo...


Creating your retirement vision

A vision means different things to different people. To the head of a large corporation, it’s the ability to chart a course that will deliver success (think Steve Jobs and Apple), to a shaman, i...

_








Member of BC Press Council


25107