Friday, October 31st9.3°C
23696
23004

Crude oil prices flat as Fed further reduces stimulus; natural gas soars

NEW YORK, N.Y. - The price of oil was flat Wednesday as a big drop in heating oil supplies was offset by a decision by the U.S. Federal Reserve to further reduce its stimulus program.

Benchmark West Texas Intermediate crude for March delivery slipped five cents to close at US$97.36 a barrel on the New York Mercantile Exchange.

Supplies of distillate fuels, including heating oil, declined sharply last week as the U.S. Northeast shivered through a cold spell.

The Energy Department said distillate supplies dropped by 4.6 million barrels, twice what analysts expected. And with cold weather expected to dominate forecasts for the next few weeks, refiners will be demanding more crude to produce heating oil.

The supply report helped push oil slightly higher in the afternoon. But that gain disappeared when the Fed, as expected, said it will cut its monthly bond purchases by an additional $10 billion to $65 billion because of a strengthening U.S. economy.

Oil prices have been underpinned by the Fed's stimulus because it has kept the dollar from strengthening, making oil more affordable for traders using other currencies. The low interest rates created by the bond buying have also attracted investors to commodities like crude oil in search of higher profits.

The rough winter weather in much of the country, including ice storms in the South, gave another boost to natural gas. Futures rose 52 cents, or 10 per cent, to US$5.56 per 1,000 cubic feet.

Brent crude, used to set prices for international varieties of crude, rose 44 cents to US$107.85 on the ICE Futures exchange in London.

In other energy futures trading in New York, wholesale gasoline gained three cents to US$2.66 a U.S. gallon (3.79 litres) and heating oil advanced six cents to US$3.18 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




Recent Trending




Today's Market
S&P TSX14613.32+154.63
S&P CDNX769.59-2.06
DJIA17390.52195.10
Nasdaq4630.742+64.604
S&P 5002018.05+23.40
CDN Dollar0.88750.00
Gold1166.30-32.2999
Oil80.55-0.35
Lumber325.70+2.10
Natural Gas3.715+0.066

 
Okanagan Companies
Pacific Safety0.125+0.015
Knighthawk0.01-0.005
QHR Technologies Inc1.18+0.03
Cantex0.045-0.015
Anavex Life Sciences0.185+0.0139
Metalex Ventures0.03-0.005
Russel Metals32.85+0.63
Copper Mountain Mining2.09+0.12
Colorado Resources0.125-0.015
ReliaBrand Inc0.015+0.003
Sunrise Resources Ltd0.05+0.025
Mission Ready Services0.39+0.015

 



22970

FEATURED Property
1804673165 Rimrock Road, Kelowna, BC
4 bedrooms 4 baths
$1,498,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Empty nesting: financial issues

Now that the children have ‘left the nest’, it is a good time to step back and take stock of your financial situation. Being on your own will probably cut household costs to some extent, b...


Keep your haunted home safe

Eerie sounds, spooky lights and Jack-o’-lanterns aglow—extra efforts at Halloween will keep visitors coming back for both tricks and treats. However, to keep the fun going, it’s imp...


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...

_








Member of BC Press Council


22771