Wednesday, April 1st3.5°C
25757
24876

Crude oil hovers below US$100 a barrel on economic, supply worries

The price of oil slipped a little on Tuesday as the market weighed potentially weaker global economic growth against continued disruptions of Libyan crude supplies.

Benchmark West Texas Intermediate crude for May delivery fell 41 cents to close at US$99.19 a barrel on the New York Mercantile Exchange. Brent crude, used to set prices for international varieties used by many U.S. refineries, rose seven cents to close at US$106.99 in London.

U.S. and Brent crude have hovered in narrow ranges over the past week as supply and demand concerns have balanced each other out. Global supplies have tightened somewhat as Libyan crude exports have fallen, but the world may need less oil if economic growth in China and Russia slows.

Energy analyst Jim Ritterbusch wrote in a report Tuesday that trading patterns were sending off "signals of a balanced oil market."

The U.S. and other Group of Seven countries vowed to launch co-ordinated sanctions on key parts of the Russian economy, which could include the energy industry, if Russian President Vladimir Putin presses further into Ukraine after the annexation of the Crimean peninsula. While that could eventually reduce Russian oil production, it could also reduce Russian demand for diesel, gasoline and jet fuel if the sanctions crimp the Russian economy.

A report on factory activity in China fell to an eight-year low in March, suggesting a further slowdown of the world's second-biggest economy and a possible decline in oil demand growth. A similar index for the U.S. fell from a four-year high.

The Libya oil industry, meanwhile, continues to have production problems. The flow of its high-quality crude, which is coveted by European refiners, has been on-again, off-again since the 2011 civil war which ousted Moammar Gadhafi. For now, it has all but dried up.

"Apart from the offshore fields, the production (in Libya) is now basically out," said Olivier Jakob of Petromatrix in Switzerland.

Prices could retreat further if forecasts for a 10th consecutive increase in U.S. stockpiles of crude oil are confirmed. Data for the week ended March 21 are expected to show a build of 2.6 million barrels in crude oil stocks and a decline of 1.8 million barrels in gasoline stocks, according to a survey of analysts by Platts, the energy information arm of McGraw-Hill Cos.

The oil supply report from the U.S. Energy Department's Energy Information Administration, the industry benchmark, will be out on Wednesday.

In other energy futures trading on Nymex, wholesale gasoline fell 0.4 of a cent to close at US$2.882 a U.S. gallon (3.79 litres), heating oil rose 1.1 cents to close at US$2.921 a gallon and natural gas rose 13.5 cents to close at $4.411 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

25779


Recent Trending




Today's Market
S&P TSX14902.44-5.95
S&P CDNX680.07-0.26
DJIA17776.12-200.19
Nasdaq4900.88-46.56
S&P 5002067.89-18.35
CDN Dollar0.7884-0.0004
Gold1185.10+2.00
Oil47.25-0.35
Lumber275.30-2.90
Natural Gas2.65+0.01

 
Okanagan Companies
Pacific Safety0.125+0.010
Knighthawk0.010.00
QHR Technologies Inc1.48-0.02
Cantex0.03-0.01
Anavex Life Sciences0.211-0.004
Metalex Ventures0.04+0.00
Russel Metals24.04-0.36
Copper Mountain Mining1.16-0.02
Colorado Resources0.11-0.01
ReliaBrand Inc0.0036-0.0024
Sunrise Resources Ltd0.04-0.01
Mission Ready Services0.25+0.02
Decisive Dividend Corporation1.80+0.02

 





FEATURED Property
2238686#64 4137 Spallumcheen Drive
3 bedrooms 1 baths
$65,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Down payment

If you have less than 20% down payment, mortgage insurance is required through Canada Mortgage & Housing (CMHC), Genworth or Canada Guaranty. Homeowners no longer need the minimum 5% down payment ...


CRA Notice of Assessment

Many Canadians rush to file their taxes on time each year and don’t think about it until the next year. One of the most overlooked notices received from the CRA annually is the annual Notice of ...


Medical confidential?

If ICBC asks your doctor for your information you may wonder: Can ICBC ask my doctor for my medical information? Can ICBC request a medical report from my doctor without my consent? What is ICBC entit...

_








Member of BC Press Council


25732