Oil falls below $92 to 8-month low of US$91.66 a barel; natural gas plummets 5% - InfoNews

Current Conditions


Oil falls below $92 to 8-month low of US$91.66 a barel; natural gas plummets 5%

January 09, 2014 - 2:36 PM

NEW YORK, N.Y. - The price of oil closed at the lowest level in eight months Thursday as traders worried about bulging supplies of crude and falling demand for gasoline.

Meanwhile, natural gas prices fell five per cent on forecasts for warmer than normal weather in the coming weeks.

Benchmark West Texass Intermediate crude for February delivery fell 67 cents to close at US$91.66 a barrel on the New York Mercantile Exchange. The price did rise back above $92 in electronic trading after the close, perhaps piggybacking on a move by U.S. stocks into positive territory.

On Wednesday, the U.S. Energy Department said supplies of gasoline rose by 6.2 million barrels last week, a jump of nearly three per cent. Platts, the energy information arm of McGraw-Hill, said the data indicated that demand for gasoline was the lowest in a year.

At the same time, U.S. production of crude oil is the highest in more than 25 years and supplies "are near the upper limit of the average range for this time of year," the Energy Department said.

As of the close, oil was down nearly seven per cent so far this year.

Natural gas futures plunged 21 cents, or five per cent, to US$4.01 per 1,000 cubic feet. Natural gas last closed below $4 on Dec. 4.

With the U.S. pulling out from a recent spell of extremely cold weather, forecasts are starting to warm up. "Some of these outlooks are tilting increasingly in favour of warmer than normal trends in some parts of the upper mid-continent," wrote Jim Ritterbusch, president of Ritterbusch and Associates, in a note to clients.

Brent crude, used to set prices for international varieties of oil, dropped 76 cents to US$106.39 on the ICE Futures exchange in London.

In other energy futures trading on Nymex, wholesale gasoline dipped one cent to US$2.64 a U.S. gallon (3.79 litres) and heating oil slipped three cents to US$2.92 a gallon.


News from © The Associated Press, 2014
The Associated Press

  • Popular vernon News
  • Comments
  • New mountain highway proposed between Red Deer and Kamloops
    An Alberta development group is pitching the idea of a new highway linking central Alberta to B.C. cutting through the mountains and a section of Banff National Park. The Central Alberta Eco
  • Kamloops firefighter back at work after co-workers saved his life
    Four months after his co-workers saved his life, a Kamloops firefighter is back at work. Mike Silva has been working with Kamloops Fire Rescue for 15 years and was enjoying some time off in
  • Pier 1 closing all of its stores in Canada
    Pier 1 Imports, Inc. announced today that it has entered into bankruptcy protection and is pursuing a sale. The retailer  commenced voluntary Chapter 11 proceedings in the U.S. Bankrupt
  • West Kelowna's Bull Mountain glistens for its close-up
    It’s not a secret that West Kelowna’s family ski hill is getting infused with new life. Bull Mountain Adventure Park is being built on the remnants of Crystal Mountain Resort, an
  • Vernon family captures mesmerizing melting ice
    A Vernon family was on their way home from Kelowna when they made a pit stop after noticing a beautiful scene along Wood Lake. Matthew Royal and his daughters noticed how “cool”
View Site in: Desktop | Mobile