Friday, August 1st17.1°C
22663
20893

Oil briefly rises above $100 as demand for fuel rises, US job sentiment improves

NEW YORK, N.Y. - The price of oil briefly rose above US$100 a barrel for the first time this year on Friday on rising demand for fuel and some positive sentiment about the U.S. job market.

Benchmark West Texas Intermediate crude for March delivery gained $2.04, or 2.1 per cent, to close at $99.88 a barrel the New York Mercantile Exchange. Oil climbed above $100 in the afternoon before dropping back. It last topped $100 on Dec. 30.

Energy analyst Stephen Schork said oil's rise was brought about by rising prices for wholesale gasoline and low supplies of diesel and heating oil. That combination will encourage refiners to buy and process more crude oil.

"It's a function of a products pulling crude," he said. "The market needs product."

Heating oil supplies have declined as a cold and snowy winter has homeowners constantly cranking up the thermostat. The Energy Department said Wednesday that supplies of distillates, which include heating oil and diesel, fell by 2.4 million barrels last week and are now 12 per cent below year-ago levels. Heating oil futures gained six cents to US$3.05 a U.S. gallon (3.79 litres).

While some drivers have stayed indoors this winter, gasoline demand is turning out to be stronger than expected, Schork said.

Wholesale gasoline futures increased seven cents to US$2.75 and were up 15 cents, or six per cent, over the last three days.

Oil was also pulled higher by a sharp rise in the U.S. stock market. While the U.S. Labor Department's jobs report showed a relatively weak number of new jobs, the number of people in the job market rose, suggesting that people are feeling better about their prospects and that hiring was depressed by the bad weather.

Natural gas again fell sharply amid predictions of milder weather for the U.S. Midwest and Northeast. The price fell 15 cents, or three per cent, to US$4.78 per 1,000 cubic feet, bringing the two-day decline to 25 cents, or five per cent.

Brent crude, used to set prices for international varieties of crude, rose $2.38, or 2.2 per cent, to US$109.57 a barrel, the highest close since Dec. 31.

(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 TSX15330.74-194.08
S&P CDNX1001.52-9.58
DJIA16563.30-317.06
Nasdaq4369.773-93.129
S&P 5001930.67-39.40
CDN Dollar0.9154-0.0015
Gold1310.00+6.70
Oil98.03-0.14
Lumber326.90+2.50
Natural Gas3.73-0.017

 
Okanagan Companies
Pacific Safety0.18-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.21-0.01
Cantex0.085+0.02
Anavex Life Sciences0.262+0.002
Metalex Ventures0.08-0.005
Russel Metals35.23+0.01
Copper Mountain Mining2.75-0.08
Colorado Resources0.205-0.015
ReliaBrand Inc0.10+0.019
Sunrise Resources Ltd0.03-0.005
Mission Ready Services0.150.00

 



21313

FEATURED Property
1990689497 Bayhill Place
6 bedrooms 4 baths
$625,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Take charge of your debt

Photo: Thinkstock.comWays to reduce your Debt:Make a budget and get budget counselingA basic first step for debt reduction is to prepare a budget and plan your spending. Once you have a budget, you mu...


Geopolitical tensions rattle markets

The Big Picture Geopolitical tensions rattle markets The spectre of rising geopolitical tensions in Ukraine and Gaza cast a shadow over an otherwise positive week in the markets. News that a passenger...


Labour shortage in BC

The mainstream media are finally waking up to something unusual in British Columbia – a labour shortage. If the experience of Alberta is a guide to our own future, the highly skilled labour will...

_








Member of BC Press Council