Oil Rises a Fifth Day


Crude oil rose to the highest in more than two weeks after cold weather in Canada shut down the world's biggest oil-sands producer and as investors bought commodities, betting the U.S. Federal Reserve will cut interest rates today.

Oil rose as Syncrude Canada Ltd. said it may take several days for oil-sands production to be restored. The project shipped 305,000 barrels a day in 2007, according to the Web site of Canadian Oil Sands Trust, Syncrude Canada's lead partner. Commodities have gained the past four days on speculation the half-percentage point interest rate cut forecast by traders and economists will sustain growth in the world's biggest economy.

Crude oil for March delivery climbed as much as $1.07, or 1.2 percent, to $92.71 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $92.39 at 10 a.m. in Singapore. Prices have risen 6.2 percent in the past five days.

New York oil futures reached a record $100.09 a barrel on Jan. 3. Prices fell the next three weeks as speculation the U.S. will fall into a recession pushed global equity markets lower.


TradingEconomics.com, Bloomberg
1/29/2008 6:51:56 PM