Monday, October 5th9.1°C

Cold weather in US, steady China growth lift crude oil to US$102 a barrel

The price of oil closed above US$102 a barrel Tuesday on expectations that cold weather in the United States and steady Chinese growth will underpin demand.

Benchmark West Texas Intermediate crude for March delivery closed up $2.13 at US$102.43 a barrel on the New York Mercantile Exchange.

Severe cold weather has been boosting energy prices, with a prolonged wave of snow and cold temperatures hitting the East Coast most of the winter.

"Another snowstorm in the U.S. is likely to keep heating demand at a high level and spark a further decline in the already severely diminished stocks of heating oil and natural gas," said analysts at Commerzbank in Frankfurt in a note to clients.

Optimism that China's economy is still healthy after credit growth increased in January also helped lift energy prices.

Meanwhile, a new round of talks began Tuesday between Iran and six world powers on finalizing a deal to control Iran's nuclear program. The outcome could have an effect on oil prices as Iran is a major oil producer and reduction of sanctions would allow the country to export more of its crude.

A weaker dollar also supported oil prices by making commodities like oil cheaper for traders using other currencies. On Tuesday, the euro was up 0.3 per cent at US$1.3747.

Brent crude, a benchmark for international oils, rose $1.28 to US$110.46 barrel on the ICE Futures exchange in London.

Among other March futures contracts trading on Nymex, wholesale gasoline rose three cents to US$3 a U.S. gallon (3.79 litres), heating oil added three cents to US$3.04 a gallon and natural gas gained 34 cents to US$5.55 per 1,000 cubic feet.


The Canadian Press

Read more Business News

Recent Trending

Today's Market
S&P TSX13580.77+241.03
S&P CDNX529.58+4.02
S&P 5001986.98+35.62
CDN Dollar0.7642+0.004
Natural Gas2.453+0.002

Okanagan Companies
Pacific Safety0.215+0.000
QHR Technologies Inc1.21+0.02
Metalex Ventures0.06+0.00
Russel Metals22.71+1.23
Copper Mountain Mining0.49+0.07
Colorado Resources0.07-0.01
ReliaBrand Inc0.004-0.000
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.095+0.005
Decisive Dividend Corp3.55+0.06
Diamcor Mining0.90+0.02


2409538#164 1255 Raymer Avenue, W Kelowna,
more details
Click here to feature your property
Please wait... loading

Perfect (reno'd) home

Photo: Thinkstock.comHow many times have you found a home in the perfect location, but it needs too much work as per the home inspection? There is a great program available through most lenders that w...

Living beyond 100

Photo: ContributedThere was a time most careers involved an apprenticeship of one sort another. Some official, others involving years of servitude, and others time simply spent watching and emulating ...

5 Claim misconceptions

Photo: Thinkstock.comIf you have been hurt in an accident or as a result of medical negligence you will likely look to your friends and family for some advice on how to deal with the situation. These ...




Member of BC Press Council