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The Canadian Press - ONLINE EDITION

Oil edges down toward US$76 amid economic uncertainty, rising U.S. dollar

By: THE ASSOCIATED PRESS

20/11/2009 4:20 PM | Comments: 14

An oil rig is seen at sunset in the desert oil field of Sakhir, Bahrain recently.

Enlarge Image Enlarge Image icon

An oil rig is seen at sunset in the desert oil field of Sakhir, Bahrain recently. (HASAN JAMALI / AP PHOTO)

NEW YORK - Oil prices fell below US$77 a barrel on Friday on a stronger U.S. dollar and amid concern about the strength of the global economic recovery.

Benchmark crude gave up 74 cents to settle at $76.72 a barrel on the last trading day for the December contract. Crude prices for January delivery lost 58 cents to settle at $77.47.

Crude prices were dragged down by uncertainty about the economic outlook, including concerns about deflation and a possible double-dip recession.

Oil has see-sawed between $76 a barrel and $82 for about a month as the dollar - whose fall this year has help boost crude prices from $32 in December - stabilized somewhat during the last few weeks. Investors often buy commodities such as oil as a hedge against a weaker U.S. dollar and inflation.

Wall Street stocks dropped for a third straight day Friday as investors grew increasingly uneasy about a rising dollar and spiking demand for the safest government debt.

A strengthening U.S. dollar curtails foreign demand for commodities, which are often traded in dollars. It also can depress U.S. exports, which become more expensive as the U.S. dollar rises.

On Thursday, the U.S. Labour Department said employers are still shedding jobs, and the Mortgage Bankers Association reported a surge in foreclosures. However, some analysts expect Asian economic growth, led by China, to help offset a sluggish recovery in developed countries.

In other Nymex trading, heating oil fell 2.08 cents to settle at $1.9756 a gallon. Gasoline for December delivery added 1.11 cents to settle at $1.9806 a gallon. Natural gas added 8.2 cents to settle at 4.424 cents per 1,000 cubic feet.

In London, Brent crude for December delivery fell 42 cents to $77.22 on the ICE Futures exchange.

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Associated Press Writer Barry Hatton in Portugal contributed to this report.

TSX:ECA, TSX:IMO, TSX:SU, TSX:HSE, NYSE:BP, NYSE:COP, NYSE:XOM, NYSE:CVX, TSX:CNQ, TSX:TLM, TSX:COS.UN

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14 Commentscomment icon

Oh ya because it's a fact that natural gas prices can never go lower than what they are at right now... gdwpg69 do you know anything about commodities? Just because the price is low doesnt mean it wont go lower...

Manitoba Hydro should go and buy a bunch of natural gas and just store it so we can keep paying lower prices...but they won't.

why not convert cars to natural gas.? it would take minimal changes to the cars. the infrastructure's already in place. the CO, CO2, and NO emissions from burning natural gas are much lower than for gasoline. natural gas is much easier to produce and refine than oil/gasoline so you could have more players ensuring competitive pricing on the market. wait. I think that last point ensures it won't happen. big oil companies controlling limited refineries which controls supplies which controls the price on the market. hmmmm....

Just another example of the bonus of so called global warming and reducing our carbon footprint. Environmentalists should be thrilled but they will probably be all doom and gloom that we aren't freezing our butts off in the dark. Thautikus

No, the US uses our oil. Taxes Taxes Taxes.

So the economy looks promising today? Hmm Let's raise the price of oil and pump prices. High fuel prices is sure to be a good thing for an economy that changes from day to day. Things are good today, but could be bad tomorrow. It's laughable reading the business section everyday. If the powers that be think $147/barrel oil and $1.40/litre gas could be sustainable in the near future once again they better give their heads a shake! The way oil and gas have climbed in recent weeks, it almost seems we are headed there again, and then again the inevitable crash as the prices correct themselves again. $80.00/barrel is way too high compared to what demand is.

price/ US gallon of gasoline.
Canadians pay $5.36
Tokyo pays $5.25
Saudi Arabia pays $0.09
Kuwait pays $0.12

We pay more because we are not an oil producing country, plus our goverment has taxed it to death.

Wait! Alberta has oil? HHMMMMMMMMM!

I am convinced that the oil brokers play dice with the daily price of oil. There seems to be no correlation with the price,inventories, common sense, discoveries etc someone is just making it all up.

Canuk wrote: "When was the last time that prices fell in Canada? Don't we use the same crude that they do in the USA?" excellent point: but did you know that we are in and subjected by the MARKET ECONOMY = squeeze the hell out of the customer who gives them the "daily bread" buttered of course on both sides.

Oh to have a lever for fuel: such a big country, such long distances! A Canadian exploratory company, drilling company, refining company and marketing co. would help - but hack, Paul Martin sold it all and Canadians could not agree to a national policy, fair sharing of the nation' resource.

There is a way out: delist ooofff the stock market any company that deal with OUR NATURAL RESOURCES. This could be done with the stroke of a pen. NO one is allowed to play politics, horde massive profits at the expense of our country's resources. These resources are for all of us, company owners and their well informed share holders.

We Canadian's (especially Manitobans) have to send the gas companies a sign. It only has to be a small one. For example, I switched to co-op. My rebate cheque sure buys a lot more than my airmiles or petropoints ever did! I don't know why I didn't do this earlier. Co-op is still making a profit, so what are the oil companies doing? Now, there are lots of other things that can be done before the alternative fuel vehicles get here. Let's let the oil companies know we are not satisfied!

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