Oil Down Despite Keystone Pipeline Shutdown

Reuters reported that oil prices dropped as a result of increased United States jobless claims and improved supply. The news that TransCanada Corp. (TSX:TRP) has suspended activity at the Keystone pipeline briefly brought prices up, but the gain was not sustained.

As quoted in the market news:

Brent December crude fell 72 cents to $112.50 a barrel by 1:27 p.m. EDT (1727 GMT). It fell earlier to $111.57, below the 200-day moving average of $112.24, a technical level monitored by chart-watching traders and analysts.

U.S. November crude was down 11 cents at $92.01 a barrel, having reached $92.41. It fell to $90.66 during the session and below that, a test of technical support could be expected at the 100-day moving average of $89.92.