Canada commodity prices edge down in October – bank

22 November 2012 14:12  [Source: ICIS news]

TORONTO (ICIS)--Canadian commodity prices edged down in October amid renewed concerns about the outlook for global economic growth, a bank said on Thursday.

Toronto-based Scotiabank said that its monthly commodity price index was down 0.2% in October from September, after two monthly gains in a row.

Metal and mineral prices, as well as prices for Canadian coking coal, dropped month to month.

However, Canadian oil and gas prices rose in October, the bank said.

While still low, Canadian natural gas export prices to the US jumped from $2.52 per thousand cubic feet in September to around $2.94 in October.

Meanwhile, prices for Canadian light oil prices in Edmonton inched up in October, and the discount of Canadian heavy oil to West Texas Intermediate (WTI) oil narrowed, the bank said.

Patricia Mohr, Scotiabank’s commodity market specialist, said that Canadian oil producers will benefit if two projects are realised: the construction of new export pipeline from Alberta to the British Columbia coast; and a project to reverse an existing pipeline to ship western Canadian oil from Ontario to refineries in Montreal, where it will replace imports.

"Because petroleum products are sold at world prices, integrating operations from crude oil production through refining allows [Canadian] producers to essentially capture world prices for crude oil - one of the merits of domestic refining," Mohr added.

By: Stefan Baumgarten
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