Friday, July 3rd16.2°C
26667

Oil above US$103 a barrel on Ukraine unrest; traders shrug off supply increase

The price of crude oil rose to a five-week high Wednesday amid unrest in eastern Ukraine, even as a report showed a large rise in U.S. supplies.

Benchmark West Texas Intermediate crude for May delivery gained $1.04 to close at US$103.60 on the New York Mercantile Exchange. The contract, which gained $2.12 on Tuesday, last closed above $103 on March 4.

Brent crude, used to set prices for international oil varieties, rose 31 cents to US$107.98 on the ICE Futures exchange in London.

Traders are uneasy about the potential for disruption of supplies due to instability in eastern Ukraine and more sanctions on Russia, a crucial supplier of oil and natural gas to Europe. Pro-Russian separatists have seized government buildings in several cities in Ukraine's industrial east in the aftermath of Russia's annexation of Crimea.

Meanwhile, the announced reopening of four Libyan export terminals could turn out to be a drawn-out process, meaning it is unlikely to boost supplies imminently, analysts concluded.

Oil rose despite a report of surging U.S. crude supplies. The Energy Department's Energy Information Administration reported that oil supplies rose by four million barrels last week, well above the 2.5-million-barrel increase called for in a survey of analysts by Platts, the energy information arm of McGraw-Hill Cos..

Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates, wrote in a letter to clients that the one positive from the report was a decline of 5.2 million barrels in gasoline supplies. Still, he thinks the overall supply numbers signal lower oil prices.

"We have much difficulty building a case for advances beyond this level. US crude stocks continue to mount as a result of rapidly rising domestic production," he wrote.

In other energy futures trading in New York, wholesale gasoline added three cents to US$3.01 a U.S. gallon (3.79 litres), heading oil gained two cents to US$2.95 a gallon and natural gas rose five cents to US$4.59 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

24947


Recent Trending




Today's Market
S&P TSX14637.99+84.66
S&P CDNX671.58+0.09
DJIA17730.11-27.80
Nasdaq5009.21-3.91
S&P 5002076.78-0.64
CDN Dollar0.7965-0.0007
Gold1168.70+5.70
Oil57.25-0.36
Lumber288.50+0.40
Natural Gas2.842+0.020

 
Okanagan Companies
Pacific Safety0.165+0.005
Knighthawk0.010.00
QHR Technologies Inc1.55+0.03
Cantex0.05+0.01
Anavex Life Sciences0.455+0.004
Metalex Ventures0.075+0.010
Russel Metals22.87+0.14
Copper Mountain Mining1.14-0.02
Colorado Resources0.065-0.015
ReliaBrand Inc0.006+0.000
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.16-0.03
Decisive Dividend Corporation2.50+0.42

 





FEATURED Property
22822671756 Keloka Drive
3 bedrooms 3 baths
$529,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Active listening

Has this ever happened to you? You had an initial meeting with a prospect. You asked that prospect what seemed to be all the right questions. You had what felt to you like a good conversation, and bas...


The price of money

Money is not a commodity. By definition, a commodity is a generic product that is bought and sold on price alone. Money, Canadian bills for example, look the same, smell somewhat the same, and are ava...


TFSA strategies

Photo: Thinkstock.comThe federal government has increased the annual contribution limit of Tax-Free Savings Accounts (TFSA) to $10,000. Going forward, the annual limit will no longer be indexed to inf...

_





26376


Member of BC Press Council


26906