You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Business

  • 2 firms to expand, add jobs
    A pair of companies will look to improve their operations with an investment of nearly $3 million combined, according to tax abatement ­requests filed last week with the city.
  • UPS boostsnumber ofholiday jobs
    DALLAS – UPS plans to hire up to 95,000 workers to help deliver packages during the busy holiday season – an increase from last year, when the company was caught unprepared for a boom in online shopping.
  • Voss opens its new headquarters
    A new North American headquarters has opened in Fort Wayne.Voss Automotive and state officials on Tuesday held a ribbon-cutting ceremony for the company’s new $7.
Advertisement

Oil falls below $89 amid ample supplies

BANGKOK (AP) — Ample supplies of oil turned prices lower Tuesday despite fighting between Israel and Palestinians that looks set to escalate sharply if diplomatic efforts fail.

Benchmark crude for December delivery was down 52 cents to $88.76 per barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange.

The contract rose $2.36, or 2.3 percent, to finish at $89.28 per barrel in New York on Monday, its highest point in nearly a month on rising concerns about the Middle East as well as optimism that U.S. political leaders will reach a budget deal before the end of the year, avoiding a hit to the economy.

But the price run-up may have been overdone, analysts said, pointing to more-than-adequate supplies.

Carl Larry of Oil Outlooks and Opinions said in an email commentary that U.S. oil production rose by 1 million barrels a day over the past year. In addition, U.S. lawmakers are pressing President Barack Obama to support TransCanada's proposed Keystone XL pipeline to transport crude oil from Canada to Gulf Coast refineries.

"We think that the production pace is only going to increase into 2013," Larry said. "So we're looking at two important steps to American oil independence."

While the escalating conflict between Israel and Hamas has raised concerns about Middle East crude supplies, analysts say the risk of immediate supply disruption isn't great because neither side is an oil producer.

Still, the risk could grow if the conflict engulfs other Middle Eastern countries.

Brent crude, which is used to price international varieties of oil, was down 50 cents to $111.20 per barrel in London.

In other energy futures trading on the New York Mercantile Exchange:

— Wholesale gasoline fell 1.8 cents to $2.714 a gallon.

— Heating oil fell 0.9 cent to $3.075 a gallon.

— Natural gas rose 3.9 cents to $3.755 per 1,000 cubic feet.

Advertisement