Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

Oil price slips below $102 a barrel as worries over supplies, geopolitical tensions ease

Oil pumps work in the desert oil fields of Sakhir, Bahrain, Nov. 29, 2012. THE CANADIAN PRESS/AP, Hasan Jamali

Enlarge Image

Oil pumps work in the desert oil fields of Sakhir, Bahrain, Nov. 29, 2012. THE CANADIAN PRESS/AP, Hasan Jamali

The price of oil slipped below $102 a barrel on Friday, falling for a second day after spiking on lower U.S. inventories and tensions in Ukraine and the Middle East.

By early afternoon in Europe, benchmark U.S. crude for September delivery was down 38 cents to $101.69 in electronic trading on the New York Mercantile Exchange. On Thursday, the Nymex contract dropped $1.05 to close at $102.07.

Brent crude, a benchmark for international oils, was up 4 cents to $107.11 in trading on the ICE Futures exchange in London.

Lower-than-expected U.S. crude inventories in a weekly Energy Department report had driven prices up on Wednesday, but expectations of stronger growth in demand were later countered as gasoline supplies were nearly three times larger than predicted.

Oil prices were also under pressure from a downgraded growth forecast from the International Monetary Fund. The IMF now projects global growth of 3.4 per cent this year, down from April expectations of 3.7 per cent growth, as it sees economic expansion slowing in the United States, Russia and developing countries.

While concerns over the clashes in eastern Ukraine and Israel's invasion of the Gaza Strip have helped keep oil above $100 a barrel, some experts said there seemed to be no new grounds for another significant increase.

"The numerous sources of geopolitical crisis could have a negative impact on demand," said analysts at Commerzbank in Frankfurt in a note to clients. "What is more, there have so far been no significant supply outages despite all the conflicts, even including the situation in Iraq."

In other energies trading on Nymex:

— Wholesale gasoline rose 0.72 cent to $2.8202 a gallon.

— Natural gas lost 4.2 cents to $3.805 per 1,000 cubic feet.

— Heating oil added 1.01 cents to $2.8893 a gallon.

(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)

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
The First World War at 100

Social Media

Canadian Mortgage Rates