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Oil falls below US$89
Oil hit a three-week low yesterday as a major North American pipeline got set to reopen. Benchmark oil fell US$1.32, or 1.5 per cent, to finish at US$88.73 per barrel in New York. That followed a two per cent decline on Friday and is the lowest close since October 3. In London, Brent crude fell 70 cents to end at US$109.44 a barrel.
TransCanada is expected to soon restart its 2,100-mile (3,380-kilometre) Keystone pipeline. It was shut Wednesday after tests showed possible safety issues. The pipeline carries about 590,000 barrels of crude per day from Canada to facilities in the US Midwest.
Falling US stocks may have also influenced oil traders. Caterpillar, the world’s biggest maker of construction and mining equipment, said it doesn’t expect the global economy to improve until the second half of next year. Such forecasts signal reduced demand for oil. In other energy futures trading in New York:
• Heating oil fell 5.78 cents to finish at US$3.0767 per gallon.
• Wholesale gasoline fell 4.88 cents to end at US$2.6475 per gallon.
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