The price of oil rose Friday after a positive U.S. economic report, but finished with a loss for the week as supplies remain plentiful.
Benchmark West Texas Intermediate crude for December delivery gained 74 cents to close at US$97.85 a barrel on the New York Mercantile Exchange. Still, oil ended the week down $2.96 a barrel, or 2.9 per cent, largely due to concerns among traders that the market is oversupplied.
On Friday, a jump in demand for commercial airplanes boosted orders for long-lasting U.S. factory goods by 3.7 per cent in September.
But reports from the Energy Information Administration this week showed that U.S. oil inventories rose by 9.2 million barrels in the two weeks ended Oct. 18, a possible symptom of subdued demand and overproduction.
“Demand isn’t looking great and it’s not anything to do with fuel efficiency in today’s cars. It’s the fact that there’s high unemployment, weak job creation,” said Carl Larry of Oil Outlooks and Opinions.
Brent crude, a benchmark for international crude also used by U.S. refineries, fell six cents to US$106.90 a barrel on the ICE Futures exchange in London.
In other energy futures trading on the Nymex, wholesale gasoline was flat at US$2.59 a U.S. gallon (3.79 litres), heating oil rose one cent to US$2.91 a gallon and natural gas added eight cents to US$3.71 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)
Note to readers: REPEATS fixing service slug