Crude below US$102 a barrel, natural gas falls 6%, on shifting weather forecasts
Oil and natural gas prices fell Tuesday as weather forecasts backed off previous predictions of unusually cold temperatures in March and April.
Benchmark West Texas Intermediate crude for April delivery dropped 99 cents to close at US$101.83 a barrel on the New York Mercantile Exchange. Natural gas futures fell 35 cents, or 6.4 per cent, to US$5.10 per 1,000 cubic feet after having plunged 11 per cent Monday.
Forecasters predict one of the coldest starts to March in history, but later next week a storm could bring warmer temperatures to states in the US Northeast as well as the mid-Atlantic and Eastern Midwest. That raised the possibility that demand for heating oil and natural gas could wane somewhat, even though March and April are both expected to be colder overall than average.
Also weighing on oil was an expectation for rising U.S. supplies. Data for the week ended Feb. 21 are expected to show an increase of 1.2 million barrels in crude oil supplies, according to a survey of analysts by Platts, the energy information arm of McGraw-Hill Cos.
Some analysts expect oil prices to drop in the spring, when many refineries will be carrying out maintenance work, which is temporarily accompanied by lower oil demand. Jitters over an economic slowdown in China could also weigh on prices as weaker growth would reduce demand for gasoline, diesel and jet fuel.
In other markets, Brent crude, which is used to set prices for international varieties of crude, fell $1.13 to US$109.51 on the ICE Futures exchange in London.
Also on the Nymex, wholesale gasoline fell four cents to US$2.80 a U.S. gallon (3.79 litres), while heating oil rose two cents to US$3.10 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)
Read more Business News
- City bucks up for UBCMPenticton / S. Okanagan - 1:33 pm
- Slope safety still a concernWest Kelowna - 1:41 pm
- RCMP will target school zonesWest Kelowna - 1:20 pm
- Teachers' vote resultsBC
|QHR Technologies Inc||1.37||+0.05|
|Anavex Life Sciences||0.223||-0.0031|
|Copper Mountain Mining||2.66||-0.02|
|Sunrise Resources Ltd||0.02||-0.005|
|Mission Ready Services||0.29||-0.01|
Last night I was privileged to be able to speak at the Greater Westside Board of Trade business awards dinner. Photo: ContributedI talked about Innovation and Collaboration which are two very interes...
There will be a time when you will need to decide who you should appoint as executor of your Will. As well, there may be a time when you will be asked by someone to act as the executor of his or her W...
Part 1 of 2 Photo: Thinkstock.com1. Move in with your parents or in-laws Explain that you're thinking strategically in moving back home. The quickest way to get into the housing market is to ma...