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Oil price crosses above $94 US
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CBC News-
Crude oil prices climbed for a third day Tuesday, reaching their highest point since mid-summer.
The December crude contract on the New York Mercantile Exchange closed up $1.90 at $93.17 US a barrel after trading as high as $94.65, its highest since Aug. 2.
Energy stocks didn’t share in the rise, with the energy index on the Toronto Stock Exchange slipping 1.64 per cent as Suncor Energy declined 1.39 per cent to $31.14 and Talisman Energy down 2.48 per cent at $13.79.
Crude surged almost $4 US a barrel Monday in the wake of data showing China's manufacturing sector expanded in September, lowering fears that the country's economy is in for a hard landing as it tries to bring down high inflation.
China, which has led global commodity demand growth in recent years, said last week its economy grew 9.1 per cent in the third quarter.
"We continue to grow more positive on the outlook for China's commodity import demand over the remainder of the year," Barclays Capital said in a report.
"Improving evidence from the macroeconomic front for October are in line with our soft landing assumptions."
Oil has jumped 23 per cent in three weeks, also helped by investor optimism that European leaders will devise a plan to limit the damage from a possible default of Greek sovereign debt.
Details of the plan are expected to be announced Wednesday.
"Although the euro zone debt issue remains quite murky, the market appears to be pricing in a viable resolution to this crisis," energy consultant Ritterbusch and Associates said in a report.
"Wednesday's EU summit could still bring some bearish news if a comprehensive debt plan is not forthcoming."
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