Oil Prices Extend Rise Above $62 On Falling Inventories

Oil prices edged higher Thursday, reflecting falling U.S. energy inventories, high fuel oil consumption and the approach of the Northern Hemisphere's winter season.

Light sweet crude for January delivery rose 21 cents to $62.67 a barrel . Brent futures rose 42 cents to $63.49.

Other factors contributing to the market's upward momentum included a decline in the U.S. dollar, the currency in which crude oil is traded. The possibility of further production cuts by the Organization of Petroleum Exporting Countries when it meets next month in Nigeria also weighed on traders' minds.

Oil and gas prices would likely to go higher.

"There are bullish factors in the market finally. I expect prices will rise to $64-$65 in December, according to current trends," Emori said.

Hdemand for heating oil despite relatively warm weather in the U.S.. Requirements should further increase if the forecast cold spell reaches the U.S. East Cost in the next few days.

A strong market would likely preclude any more OPEC cuts, despite statements from oil ministers suggesting cutbacks could be on the agenda of the Abuja meeting.

Oil prices are down about 20 % since hitting a high above $78 a barrel in mid-July 2006.

Ottawa Running Off The Rails

The light rail line is threatening to become the most expensive project the city never had.

Ottawa could be facing massive monetary penalties if the project is either delayed for a lengthy period or canceled.

And by massive we're talking in terms of tens of millions of dollars.

Siemens, the company chosen to build the 30-km LRT line, is reported to be frustrated with the flow of the project and the delays and ready to make its point in court.

There is no way in hell (Siemens) is going to let Ottawa get away with screwing them up if the whole thing gets canned. It would embarrass them internationally.

But if Siemens wants to play tough, the new mayor could find himself between a rock and a hard place. He'd be pressured to support a project he doesn't like to avoid shelling out millions of dollars we can't afford.

The mayor-elect made it clear during the recent municipal election campaign that he's not a fan of the north-south route and would like to can it in favor of moving ahead with the east-west link.

Judging by the massive majority he received from Ottawa voters, a lot of local taxpayers feel the same way.

We'd hate to see the city on the hook for tens of millions of dollars in penalties, but at the same time we're nervous about the plan as it exists -- mainly because there's so much we don't know about it.

Councillors are to receive a staff briefing on the project on Dec. 5, but already a couple of rookie members are lining up on opposites sides of the debate.

Christine Leadman, the new councillor for Kitchissippi Ward, says she isn't in favour of the project and "still needs convincing this is a good process."

Meanwhile Gloucester-South Nepean Coun. Steve Desroches, another one of the new faces around the council table, supports the project. "It's essential to the growth of the south end," Desroches said.

True enough, but a viable, practical public transportation system is vital to the city as a whole. Which is why council has to get it right from the start.