Oil rises on pipeline expansion news; market ignores supply data, govt shutdown
Oct 2, 2013 / 10:32 pm
NEW YORK, N.Y. - The price of oil rose the most in two weeks Wednesday on the prospect of more oil being shipped between a key Midwest hub and the U.S. Gulf Coast.
Benchmark West Texas Intermediate crude for November delivery rose $2.06, or two per cent, to close at US$104.10 a barrel on the New York Mercantile Exchange.
Reports said that TransCanada Corp. (TSX:TRP) is close to completing work on the southern portion of its Keystone pipeline expansion. That could mean as much as 700,000 barrels a day moving out of Cushing, Okla., the pricing point for U.S. benchmark oil. The additional demand is seen as positive for oil prices.
The market shrugged off a report from the U.S. Energy Department showing bigger than expected increases in U.S. oil and gasoline supplies. It also ignored, at least for a day, the partial shutdown of the U.S. government.
Demand for oil in the U.S. could weaken if the shutdown curbs economic growth and continues to stop 800,000 federal workers from commuting. The workers were furloughed after U.S. lawmakers failed to agree on a budget measure to fund government operations after the fiscal year ended Monday.
Brent crude, a benchmark used to price imported crude used by many U.S. refineries, gained $1.25 to US$109.19 in London.
In other energy futures trading on Nymex, wholesale gasoline rose two cents to US$2.63 a U.S. gallon (3.79 litres), heating oil rose four cents to US$2.99 a gallon and natural gas dropped seven cents to US$3.54 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||1.18||-0.01|
|Anavex Life Sciences||0.329||+0.014|
|Copper Mountain Mining||1.53||-0.05|
Big Picture Bank earnings and upbeat economic news highlight an active week In contrast with last week’s quieter, U.S. holiday-shortened week, the first week of December was a comparatively acti...
This column is the last of three, for how to prove your personal injury claim. It is the piece de resistance of the trilogy, the Chuck Norris piece – the final say! As mentioned in the first two...
Recently I recorded a video series for my keynote speaking business. It was called from Faith to Future. In one of the episodes, I talked about the concept of using hard work to get out of a difficul...
- Ad or not, soaring WestJet viral video a branding win: marketing experts
- Mobile trend will push phone, tablet ownership past PCs in 2014: IDC Canada
- Court strikes down several claims in wheat board lawsuit, but case move ahead
- Airlines forecast big profit jump to $19.7 billion in 2014 as fuel prices fall, demand rises
- US business stockpiles jump 0.7 per cent in October, biggest gain since January
- US hits firms evading Iran sanctions, while Congress debate over new measures goes on
- Bombardier and Embraer split American Airlines regional jet order
- Britain's phone-hacking trial hears Queen Elizabeth II annoyed by nut-eating police officers
- CPPIB buys portfolio of agricultural land from Assiniboia Farmland LP for $128M
- US unemployment aid applications surge to 368,000, reflecting bump in claims after holiday
- BoC's Poloz says low interest rates needed to keep deflation at bay
- New house prices rose in October after flat September: StatsCan