Quantcast
Latest Stories

New York oil soars after Canadian pipelines shut



AP FILE PHOTO

NEW YORK—New York oil prices sharply rebounded Monday after a leak forced the closure of Canadian pipelines, raising concerns about supply disruptions in North America.

New York’s main contract, West Texas Intermediate (WTI) light sweet crude for August, closed at $95.18 a barrel, up a hefty $1.49 from Friday.

European benchmark Brent eked out a small gain amid concerns about China’s slowing economy and credit crunch, which cast a cloud over financial markets.

Brent North Sea crude for delivery in August clawed back loses to end 25 cents higher at $101.16 a barrel in London trade.

The New York WTI contract had opened lower but rebounded as investors worried about Canadian pipeline supplies after heavy rains caused severe flooding in western Canada.

On Sunday, Canadian energy company Enbridge announced that it had shut three pipelines in Alberta province after one of them leaked about 750 barrels of crude.

The company said that heavy rains in the area may have resulted in ground movement that caused the leak. The other pipelines were shut as a precaution.

“There are three pipelines down and this is giving support to the WTI,” said Andy Lipow of Lipow Oil Associates.

The shutdown affected the pipeline network feeding oil from Alberta to refineries in Canada and the United States.

Phil Flynn of Price Futures Group said the pipelines transport about one million barrels per day and the closure came as refiners get ready for the big July 4 US Independence Day holiday weekend.

“People expected that it would be back on line immediately,” Flynn said. But, he said, the Canadian company gave no time frame for reopening the pipelines “so we saw a little bit of panic buying.”

The upcoming US Commerce Department’s third estimate of first-quarter US economic growth, on Wednesday, also weighed on the crude market, with investors fretting that an upbeat reading may nudge the Federal Reserve closer to winding down its massive stimulus.

“There is some concern that if there is a revision of the estimates upwards, it might suggest that the US Fed will taper off its stimulus program sooner,” Jason Hughes, head of sales trading at CMC Markets in Singapore, told AFP.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Canadian pipeline closure , Commodities , Energy , New York , oil , Prices , supply , supply disruption

  • JuanTamadachi

    Good news for those holding PDVSA and Venezuelan sovereign bonds. Prices should show an increase.

  • carlcid

    High oil prices, weak peso = high inflation. Crashing stock market, softening real estate prices = less capital appreciation. No jobs, no investments = no disposable income. This sounds like a perfect storm!

  • Noel

    For all the things Canada depend on the US, never thought that the US depends largely on Canada’s oil.



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Anti-gay demo in Ethiopia cancelled
  • Obama launches measures to support solar energy in US
  • Nebraska toddler gets stuck inside claw machine
  • Philippine eagle rescued by Army turned over to DENR
  • Gunmen attack Iraq military base, kill 10 soldiers
  • Sports

  • Vietnam says it will not host Asian Games
  • Nadal passes clay landmark with 300th victory
  • Wawrinka waltzes through with Monte Carlo walkover
  • Power Pinays smash India in Asian Women’s Club volleyball opener
  • PH youth boxers off to stumbling start in AIBA World tilt
  • Lifestyle

  • Ford Mustang turns 50 atop Empire State Building
  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • This is not just a farm
  • Clams and garlic, softshell crab risotto–not your usual seafood fare for Holy Week
  • Entertainment

  • Cannes film festival launches race for 2014 Palme d’Or
  • Jones, Godard, Cronenberg in competition at Cannes
  • Will Arnett files for divorce from Amy Poehler
  • American rapper cuts own penis, jumps off building
  • Jay Z to bring Made in America music fest to LA
  • Business

  • Total says makes ‘very promising’ oil find off Ivory Coast
  • ‘Chinese Twitter’ firm Weibo to go public in US
  • World stocks subdued, Nikkei flat on profit taking
  • Asia stocks fail to match Wall Street gains
  • Fired Yahoo exec gets $58M for 15 months of work
  • Technology

  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Filipinos #PrayForSouthKorea
  • Taylor Swift tries video blogging, crashes into fan’s bridal shower
  • DOF: Tagaytay, QC best at handling funds
  • Smart phone apps and sites perfect for the Holy Week
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Malaysia quarantines 64 villagers over MERS virus
  • DFA: 2 Filipinos survive Korean ferry disaster
  • PH asks airline passengers to check for MERS
  • Syria most dangerous country for journalists, PH 3rd—watchdog
  • Japan says visa-free entry still a plan
  • Marketplace