Strong stocks, weak dollar boost oil

Oil prices pushed through early losses to settle above US$70 a barrel Monday on the coat tails of strong equity markets and weakness in the U.S. dollar.

Oil prices pushed through early losses to settle above US$70 a barrel Monday on the coat tails of strong equity markets and weakness in the U.S. dollar.

“It still recognizes the favourable vibes that it’s getting from the stock market, said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates.”

Benchmark crude for November delivery gained 46 cents to settle at $70.41 on the New York Mercantile Exchange.

Retail gasoline prices in the United States held steady overnight at $2.461 a gallon, but the average national price has dropped nearly 20 cents a gallon since mid-August as the summer driving season wound down, according to AAA, Wright Express and Oil Price Information Service. Consumers are paying about $1.06 less than they were at this time last year.

In Canada, the price of gasoline at the pump averaged 95.5 cents Canadian per litre, down from $1.015 per litre a month ago and $1.209 per litre at this time last year, according to price-watching website

Weak economic data weighed on crude prices last week. The U.S. reported worse than expected manufacturing and jobs numbers, with the unemployment rate rising to 9.8 per cent in September, the highest since 1983.

This week will feature a slew of third quarter company earnings reports that could hint at the health of the U.S. economy.

PFGBest analyst Phil Flynn said swelling U.S. crude supplies are staggering, but the dire state of the jobs market is also hitting the energy markets.

“Welcome to the jobless economic recovery that should reduce oil demand expectations even further as we look out into our future,” Flynn said in his morning report.

Federal Reserve chairman Ben Bernanke last week said that even though the recession is technically over, the economy will feel weak for some time.

Analyst and trader Stephen Schork said he believes Bernanke.

“In other words, the residue of this recession will linger in the psyche of the American consumer — whose spending drives two-thirds of the U.S. economy — for quite some time to come,” Schork wrote in his morning report.

The oil markets also slipped on geopolitical news out of Nigeria, where a rebel leader accepted a government amnesty offer to disarm. Unrest in the country has cut its oil production by a million barrels a day, allowing Angola to overtake it as Africa’s top oil producer.

Traders will eye the first earnings for the July-to-September period, with Aluminum producer Alcoa Inc., PepsiCo Inc. and Marriott International Inc. scheduled to report this week.

Just Posted

Scares and chills await at haunted house in Red Deer

Zed Haunted House helps raise money for Boys and Girls Club of Red Deer District

PHOTO: Renewable Energy Fair at Red Deer College

The Renewable Energy Fair and Workshops event was held at Red Deer… Continue reading

PHOTOS: Red Deer College Queens host third annual Pink in the Rink game

Queens raised $12,035 for the Central Alberta Cancer Centre.

PHOTOS: The Mustard Seed CEO speaks at Seeds of Hope Gala in Red Deer

The first-ever Seeds of Hope Gala was held at the Red Deer… Continue reading

Person airlifted to hospital after collision near Innisfail

One person was airlifted to hospital after a serious collision west of… Continue reading

WATCH: Make-A-Wish grants Star Wars loving teen’s wish

The Make-A-Wish Foundation granted Anakin Suerink’s wish in Red Deer Saturday afternoon

Turkey to reveal details of probe into Khashoggi’s killing

ISTANBUL — In a sign of growing pressure on Saudi Arabia, Turkey… Continue reading

Utah truck driver is jailed without bond after crash kills 6

HEBER, Utah — A man suspected of driving under the influence remained… Continue reading

A ragged, growing army of migrants resumes march toward US

TAPACHULA, Mexico — A ragged army of Honduran migrants streamed through southern… Continue reading

Postal workers to begin strikes in 4 Canadian cities Monday if deal not reached

OTTAWA — The union representing 50,000 Canada Post employees says it will… Continue reading

Migrant caravan swells to 5,000, resumes advance toward US

CIUDAD HIDALGO, Mexico — Despite Mexican efforts to stop them at the… Continue reading

“I don’t feel real”: Mental stress mounting after Michael

PANAMA CITY, Fla. — Amy Cross has a hard time explaining the… Continue reading

Toronto residents set to vote Monday on the next four years of civic leaders

Toronto’s municipal election campaign, marked by unprecedented provincial interference, ends Monday when… Continue reading

Former PQ minister Lise Payette remembered as role model for female politicians

MONTREAL — Members from across Quebec’s political spectrum gathered at a downtown… Continue reading

Most Read