Commodities: Oil pares gains as pipelines reopen
Bumper gains on the energy markets soon disappeared as oil pipelines running between the US and Canada were reopened, having been shut earlier on following an explosion.
US light crude for January delivery had topped $95 in electronic trade, but closed just 39 cents higher at $91.01 on the New York Mercantile Exchange.
The pipelines, operated by Enbridge Inc. and Enbridge Energy Partners, provide 15% of total US crude imports, and carried 1.5m barrels each day in the third quarter.
Ongoing speculation that oil cartel OPEC will increase production at a meeting in Abu Dhabi on 5 December also served to drag the black gold back from initial highs.
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On the metal markets, gold lost its appeal as the dollar improved against the major currencies, while dealers also pointed to profit taking at the month end.
Gold for December delivery lost $5 to $795.30 an ounce in New York having dropped almost 2% during the previous session.
But analysts still think gold has a lot going for it, with general dollar weakness, high energy costs and credit market concerns likely to provide support.
Elsewhere, silver and palladium were on the back foot, but silver and copper both registered gains.
