Saturday, September 5th6.0°C
27106
26758

Oil falls below US$98 on China economic slowdown jitters; higher US supplies

The price of oil dropped below US$98 a barrel Wednesday as the possibility of a deeper economic slowdown in China fed expectations of weaker demand and a report showed a rise in U.S. oil supplies.

Benchmark West Texas Intermediate crude for April delivery fell $2.04, or two per cent, to close at US$97.99 a barrel on the New York Mercantile Exchange, the first close below $100 in a month.

Brent crude, used to set prices for international varieties, dropped 53 cents to US$108.02 a barrel on the ICE Futures exchange in London.

China's drop in exports in February fuelled worries of a further slowdown in the world's second-largest economy, which would tamp down demand for energy. China's economic growth of 7.7 per cent last year was the lowest in two decades.

Meanwhile, the U.S. Energy Department said U.S. crude oil supplies grew by 6.2 million barrels last week, well above the increase of 2.3 million barrels expected by analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos.

Oil prices have been dropping since last week, when they spiked on fears that Russia's military incursion into the Crimean peninsula might lead to U.S. and European sanctions on one of the world's largest energy suppliers.

Providing some support to prices, the Organization of Petroleum Exporting Countries, which accounts for around a third of the world's oil production, raised slightly its forecast for global crude demand in 2014.

In its monthly oil market report released Wednesday, OPEC estimated the world will consume 91.1 million barrels a day this year, 1.14 million barrels more than in 2013 and 50,000 barrels above the group's previous forecast released in February.

In other energy futures trading on Nymex, wholesale gasoline slipped one cent to US$2.96 a U.S. gallon (3.79 litres), heating oil declined four cents to US$2.93 a gallon and natural gas lost 12 cents to US$4.49 per 1,000 cubic feet.

(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

26873


Recent Trending




Today's Market
S&P TSX13478.31-118.10
S&P CDNX552.61-1.14
DJIA16102.38-272.38
Nasdaq4683.92-49.58
S&P 5001921.22-29.91
CDN Dollar0.7532-0.0047
Gold1120.70-3.00
Oil45.67-1.08
Lumber234.00+1.10
Natural Gas2.658-0.067

 
Okanagan Companies
Pacific Safety0.215-0.005
Knighthawk0.010.00
QHR Technologies Inc1.24+0.00
Cantex0.04-0.01
Anavex Life Sciences1.36+0.25
Metalex Ventures0.05-0.00
Russel Metals21.23+0.14
Copper Mountain Mining0.59-0.01
Colorado Resources0.075-0.010
ReliaBrand Inc0.0045+0.0005
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.07-0.01
Decisive Dividend Corp2.62+0.12

 





FEATURED Property
20976481080 Sunnyside Road
10096617 bedrooms
$439,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


The ball and chain

I have been pleasantly surprised of late to speak with business owners who understand the impact of fixed versus variable costs. A fixed cost is one that must be paid each and every month regardless o...


Where does the money go?

Photo: Thinkstock.comOne of the major components of business relationships that involve money are the fees in the investment industry. There is currently a quiet battle being waged between the practit...


Agree to ask questions

Photo: Thinkstock.comThe STORY: I think, said Janet to herself, that I just figured out a solution to my problem of letting the prospect run the meeting.With that thought in mind, she got out of her c...

_








Member of BC Press Council


27373