Wednesday, November 26th0.3°C
24157
22916

Crude jumps above $102 a barrel on Ukraine unrest, lower forecast for US output

The price of oil climbed above US$102 a barrel Tuesday, supported by renewed unrest in eastern Ukraine and a lowered domestic production forecast from the U.S. Energy Department.

Benchmark West Texas Intermediate crude for May delivery gained $2.12, or 2.1 per cent, to US$102.56 a barrel on the New York Mercantile Exchange, its highest closing price since March 7.

Brent crude, used to set prices for international oil varieties, rose $1.85 to US$107.67 on the ICE Futures exchange in London.

Tensions in Ukraine escalated again Tuesday as security forces ousted pro-Russian protesters from an occupied government building in the eastern city of Kharkiv, while regional administration headquarters in Donetsk remained under the control of protesters. They are demanding referendums on the regions' status, which could pave the way for further annexations by Russia.

"Any further escalation of the situation would intensify tensions between Russia and the West and could lead to tighter sanctions being imposed on Russia," said analysts at Commerzbank in Frankfurt in a note to clients. "So far, the market appears to believe this to be unlikely, though that means the price would react all the more strongly if sanctions actually were imposed on the Russian oil and gas sector."

Meanwhile, the Energy Department slightly lowered its prediction for domestic oil production this year to 8.37 million barrels a day from 8.39 million barrels. U.S. oil production has been surging thanks to improved methods of drilling for oil in shale rock formations. Last year, the U.S. produced 7.44 million barrels of oil a day.

Wednesday, investors will also be monitoring fresh information on U.S. stockpiles of crude and refined products. Data for the week ended April 4 are expected to show a build of 2.5 million barrels in crude oil stocks and a draw of 1.3 million barrels in gasoline stocks, according to a survey of analysts by Platts, the energy information arm of McGraw-Hill Cos.

In other energy futures trading in New York, wholesale gasoline rose five cents to US$2.98 a U.S. gallon (3.79 litres), heating oil added four cents to US$2.93 a gallon and natural gas gained six cents to US$4.53 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

24053


Recent Trending




Today's Market
S&P TSX15073.65+58.24
S&P CDNX780.64-6.86
DJIA17814.94-2.96
Nasdaq4758.252+3.36
S&P 5002067.03-2.38
CDN Dollar0.8865-0.0019
Gold1195.40-1.70
Oil73.88-0.21
Lumber328.80-0.70
Natural Gas4.295+0.144

 
Okanagan Companies
Pacific Safety0.16-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.32+0.04
Cantex0.040.00
Anavex Life Sciences0.175-0.005
Metalex Ventures0.030.00
Russel Metals32.14+0.65
Copper Mountain Mining2.15-0.02
Colorado Resources0.130.00
ReliaBrand Inc0.0134-0.0001
Sunrise Resources Ltd0.045-0.005
Mission Ready Services0.325-0.04

 
23744


24053

FEATURED Property
2053694306 Stellar Drive
3 bedrooms 2 baths
$714,500
more details
image2image2image2
Click here to feature your property
Please wait... loading


The last great Canadian tax shelter

A guide to how flow-through fund limited partnerships can mightily aid your tax planning!The end of the year will raise concerns among many professionals, self-employed persons, business owners and ev...


What I learned in China: Part 2

As per my previous article on my visit to China, we have much to learn about and from their people. It is potentially the largest market on earth with 1.3 billion people in one country but much will d...


Retirement: Health Issues

Our health is really our greatest asset and maintaining our health is of tremendous importance. You want to do what you can to ensure that health issues will not jeopardize the enjoyment of your retir...

_



24207

24119


Member of BC Press Council


23369