Crude oil price falls to near US$103 a barrel amid easing Mideast tensions
Sep 25, 2013 / 5:48 am
NEW YORK, N.Y. - The price of oil fell for the seventh time in eight days Tuesday as the United States signalled a willingness to pursue a diplomatic path with Iran.
Benchmark West Texas Intermediate crude for November delivery fell 46 cents to finish at US$103.13 a barrel on the New York Mercantile Exchange, the lowest close since July 30, after hitting a day low of $102.30 earlier. Oil has dropped 6.7 per cent since closing at a two-year high of $110.53 on Sept. 6.
Some analysts said that a seeming thaw in relations between Iran and western powers and apparent diplomatic progress over the elimination of Syria's chemical weapons were easing fears of a potential disruption in oil supplies.
President Barack Obama on Tuesday welcomed the new Iranian government's pursuit of a "more moderate course," saying it should offer the basis for a breakthrough on Iran's nuclear impasse with the United Nations and the U.S.
Sanctions against Iran's oil sector have cut the Islamist Republic's exports from 2.5 million barrels in 2011 to 1.2 million.
Obama also called on the UN Security Council to pass a resolution that would enforce consequences on Syrian President Bashar Assad if he fails to follow a U.S.-Russian deal to turn his chemical weapon stockpiles over to the international community. That deal, brokered by U.S. Secretary of State John Kerry, averted a threatened U.S. military strike.
Jim Ritterbusch, president of Ritterbusch and Associates, wrote in a note to clients that much of the recent selling "would appear to represent a process of throwing in the towel as a result of a need to downsize geopolitical risk premium by at least $5 to $6 a barrel."
In other markets, Brent crude, the benchmark for international crudes used by many U.S. refineries, rose 48 cents to US$108.64 a barrel on the ICE Futures exchange in London.
In other energy futures trading on Nymex, wholesale gasoline rose four cents to US$2.66 a U.S. gallon (3.79 litres), heating oil was flat at US$2.96 a gallon and natural gas lost 11 cents to US$3.49 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.UN), (TSX:CVE)
Read more Business News
|QHR Technologies Inc||1.19||+0.08|
|Anavex Life Sciences||0.38||+0.04|
|Copper Mountain Mining||1.55||0.00|
I saw your comment while reading your business article on Castanet regarding Harvey’s Hamburgers being the “Best Tasting Hamburgers". It is true, Harvey’s usually wins that awa...
Opportunities to Be Aware of This Year As the 2013 year is coming to an end, individuals should be mindful of year-end tax planning opportunities that will need to be implemented prior to December 31s...
When was the last time you thought about your mortgage? Most people take out a mortgage with their bank for five years and then forget about it. When you took out that mortgage did anyone discuss ot...
- Kroger 3rd-quarter profit matches Wall Street expectations; sticks to its outlook for the year
- Government's 1st measure of creative economy finds arts, culture add $500 billion to GDP
- Transcontinental buys 74 Sun Media community papers in Quebec for $75M
- Canada's exporting sector expects to improve sales over next six months
- Sun Media sells 74 community papers
- Capital Power, Enmax to jointly develop new gas-fired plant near Edmonton
- Canadian Press NewsAlert: Tiff Macklem to step down from Bank of Canada
- US economy expands at 3.6 per cent rate in Q3 but business stockpiles drive half of the growth
- US jobless claims tumble 23,000 to 298,000, sign that companies are laying off fewer workers
- CIBC plans to open a branch at Pearson airport to draw in travellers, newcomers
- Transcontinental buying 74 Sun Media community papers in Quebec for $75 million
- RBC president and CEO Gordon Nixon to retire in Aug. 2014