SC: Commodities: Oil surges on pipeline closure, demand forecast
LONDON (SHARECAST) - Crude oil futures powered ahead on Friday after the International Energy Agency increased its global oil demand forecast for this year by 50,000 barrels a day.
The closure of a major pipeline from Canada to the US also pushed prices higher.
Crude oil for October delivery rose $2.20 to settle at $76.45 a barrel on the New York Mercantile Exchange.
Enbridge Energy Partners closed down the pipeline late Thursday after a leak was found.
Crude oil prices enjoyed its biggest one day rise since the start of August despite weekly figures showing high oil supplies.
The glut in US inventories has been keeping a lid on any gains recently with supplies of crude, diesel and distillates hitting a new 27-year high according to the latest government data.
Chinese trade data also encouraged interest in oil after an unexpected jump in imports last month cut China’s trade surplus to around $20bn. Imports were up over 35% in August compared with last year to $119.3bn, much more than the 25% predicted by economists.
As risk appetite picked up, gold prices headed south. Gold for December delivery closed $4.40 lower to $1246.50 an ounce.
