Oil rises from 4-month low as re­finer­ies restart

The Pak Banker - - Front Page -


Oil rose from the low­est level in al­most four months as re­finer­ies re­stored pro­duc­tion af­ter Hur­ri­cane Sandy tight­ened fuel sup­plies.

Prices snapped a three­week loss as four of the six North­east re­finer­ies that were forced to close be­cause of Sandy re­sumed out­put. Gains ac­cel­er­ated in the fi­nal 15 min­utes of floor trad­ing as gasoline jumped and Brent oil in Lon­don climbed on un­prece­dented de­lays in North Sea For­ties ship­ments.

"Re­finer­ies are kick­ing back up and it's a lit­tle sup­port­ive for oil in the short term," said Kyle Cooper, di­rec­tor of com­modi­ties re­search at IAF Ad­vi­sors in Hous­ton. "Mar­ket's sold off quite a bit and you prob­a­bly have value in­vestors com­ing in."

West Texas In­ter­me­di­ate oil for De­cem­ber de­liv­ery rose 79 cents, or 0.9 per­cent, to set­tle at $85.65 a bar­rel on the New York Mer­can­tile Ex­change. The con­tract ended at $84.86 a bar­rel on Nov. 2, the low­est set­tle­ment since July 10. Prices have dropped 13 per­cent this year. Brent oil for De­cem­ber set­tle­ment in­creased $2.05, or 1.9 per­cent, to end the ses­sion at $107.73 a bar­rel on the ICE Fu­tures Europe ex­change.

Three re­finer­ies in New Jersey, Delaware and Penn­syl­va­nia with a to­tal ca­pac­ity of 527,200 bar­rels a day re­turned to nor­mal op­er­a­tions last week and Philadel­phia En­ergy So­lu­tions' 335,000-bar­rels-a-day plant in Philadel­phia was pro­duc­ing at re­duced rates as of to­day, ac­cord­ing to the En­ergy Depart­ment.

Hess Corp. (HES)'s Port Read­ing and Phillips 66's Bay­way re­finer­ies in New Jersey re­mained shut.

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