Gold News

US stock futures tumble as pipelines catch fire

US stock futures fell today (November 29th) to stem a two-day upsurge, as oil prices shot up more than $4 per ounce after an explosion cut off Canadian oil routes to the US.

Two workers were killed in the tragic accident at Enbridge Inc, with four pipelines that supply an average of 1.5 million barrels per day to US refiners closed off – impacting oil supply predictions and stock valuations.

Enbridge pipelines running through to the American mid-west from oil-rich Canada provide around 15 per cent of total US crude imports, making the potential economic impact of the accident very high.

Paul Horsnell, head of commodities research at Barclays Capital, told Bloomberg: "It is a major incident with major supply issues in an important area. It will put pressure on prompt demand in the mid-west."

With US investors responding to the signals from oil, the S&P 500 futures dropped 2.6 points, while Nasdaq 100 futures fell one point and Dow Jones Industrial Average futures also slipped a total of 17 points.

Despite the impact of the Canadian pipeline fire, US crude oil stockpiles retained their position 2.9 per cent the five-year average, quenching the potential for market mayhem and inflationary concerns.

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