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Oil prices rise to over two-year high as demand improves

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Oil prices rose on Monday, hitting their highest levels in more than two years, supported by economic recovery and the prospect of fuel demand growth as vaccination campaigns in developed countries accelerate.

Brent rose 34 cents to $73.03 a barrel by 12:56 p.m. EDT (1656 GMT). Earlier in the session, it reached $73.64 a barrel, its highest since April 2019.

U.S. West Texas Intermediate rose 27 cents to $71.18 a barrel. It hit a session high of $71.78 a barrel, its highest since October 2018.

“The two leading crude markers are trading at (almost) two-and-a-half-year highs amid a potent bullish cocktail of demand optimism and OPEC+ supply cuts,” said Stephen Brennock of oil broker PVM.

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“This backdrop of strengthening oil fundamentals have helped underpin heightened levels of trading activity.”

Motor vehicle traffic is returning to pre-pandemic levels in North America and much of Europe, and more planes are in the air as anti-coronavirus lockdowns and other restrictions are being eased, driving three weeks of increases for the oil benchmarks.

The mood was also buoyed by the G7 summit where the world’s wealthiest Western countries sought to project an image of cooperation on key issues such as recovery from the COVID-19 pandemic and the donation of 1 billion vaccine doses to poor nations.

The International Energy Agency said on Friday that it expected global demand to return to pre-pandemic levels at the end of 2022, more quickly than previously anticipated.

The IEA urged the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, to increase output to meet the rising demand.

The OPEC+ group has been restraining production to support prices after the pandemic wiped out demand in 2020, maintaining strong compliance with agreed targets in May.

 

Graphic: Oil Demand/Supply balance – 

 

On the supply side, heavy maintenance seasons in Canada and the North Sea also helped prices stay high, said Rystad Energy analyst Louise Dickson.

“In June 2021, Rystad Energy estimates more than 330,000 barrels per day of oil and condensate supply is offline at Canada oil sands projects, and 370,000 bpd of supply offline in the North Sea,” Dickson said.

U.S. oil rigs in operation rose by six to 365, the highest since April 2020, energy services company Baker Hughes Co said in its weekly report. [RIG/U]

It was the biggest weekly increase of oil rigs in a month, as drilling companies sought to benefit from rising demand.

 

(Reporting by Stephanie Kelly in New York; additional reporting by Bozorgmehr Sharafedin and Aaron Sheldrick; Editing by Marguerita Choy and Emelia Sithole-Matarise)

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Body believed to be missing B.C. kayaker found in U.S., RCMP say – CBC.ca

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The RCMP say a body that was recovered by authorities in Washington state is believed to be one of two kayakers reported missing off Vancouver Island on Saturday.

Const. Alex Bérubé said the identity of the body found on San Juan Island, just south of the border, is still to be confirmed by the coroner.

A search has been underway in the waters off Sidney, B.C., about 25 kilometres north of Victoria, since the two kayakers were reported missing.

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RCMP previously said Daniel MacAlpine, 36, and Nicolas West, 26, went missing while kayaking from D’Arcy Island to View Beach on Saturday afternoon. They were in a teal blue, fibreglass, two-person kayak.

Police said members of the Central Saanich Police Department and Peninsula Emergency Measures Organization search and rescue were involved in the search, and the Joint Rescue Co-ordination Centre and Canadian Coast Guard were also assisting.

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Some Canadians will be digging out of 25+ cm of snow by Friday – The Weather Network

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Digital WritersThe Weather Network

Digital Writers

Prepare for multiple rounds of April snowfall this week, as Labrador braces for wintry conditions. This onslaught of snow is expected to blanket the region, potentially leading to hazardous travel conditions and disruptions throughout the week

As we march even deeper into the heart of the spring season, many parts of Canada are finding it tough to find any consistent signs of warming weather. Add to the mix periods of snow and wintry precipitation, and it’s safe to say the winter season is certainly not going out without a strong fight.

This week, parts of the East Coast will bear the brunt of the winter weather, with multiple rounds of April snowfall stacking up in Labrador. The chances for snow flurries will stick around all week long, bringing as much as 25 cm for some.

MUST SEE: Extreme pattern over Arctic produces 50+ degree temperature spread

Although 25+ cm of snow in April may seem extreme, for this part of the country, it’s definitely nothing out of the ordinary. In fact, the month as a whole brings about 40-50 cm of snow to Labrador on average.

Baron - normal April snowfall Newfoundland.jpg

Some communities, including Nain, even have snowfall chances stretch all the way into June!

“This week will be a little bit different however, as some regions could reach about half of Labrador’s monthly averages alone,” says Rachel Modestino, a meteorologist at The Weather Network. “The first round on Tuesday will pack quite the punch, with heavy snow and gusty winds stretching from Labrador city to the coast.”

Baron - Labrador precip Tuesday.jpg

Winds will be gusting between 70-90 km/h at times, and travel conditions will likely deteriorate quickly due to potential whiteouts and reduced visibility.

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Fire at building under construction in north-end Halifax quickly extinguished – CBC.ca

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Witnesses described hearing a loud blast and seeing large plumes of black smoke on Tuesday morning as a building under construction in Halifax’s north end caught fire.

A message on Halifax’s alert system said the fire was at a building in the area of Robie and St Albans streets. About an hour later, the municipality said the fire was out.

Black smoke is seen billowing from a building under construction with a crane next.
Black plumes of smoke could be seen billowing from the building on St Albans Street Tuesday morning. (Daniel Jardine/CBC)

The alert warned people who live on the peninsula to close their windows due to smoke from the fire possibly being toxic. 

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“Residents and businesses near the fire should still keep windows closed and air exchangers turned off until air quality conditions improve in the coming hours as a precaution,” the municipality said on X, formerly known as Twitter.

Halifax Regional Police were asking people to avoid the area during what is normally a time of heavy morning traffic.

Large plumes of back smoke billow from an under construction building.
James Shaw lives on McCully Street and heard a blast around 8:20 a.m. local time. He came outside to find a building he lives near was on fire. (Submitted by James Shaw)

James Shaw lives nearby. He said he heard a blast around 8:20 a.m. local time.

“It shook the whole house,” Shaw said in an interview at the scene. “So I came outside … and saw this incredible building here on fire. Big black smoke. Lots of sparks and stuff going.”

A fire truck is seen driving down a city street, with an under construction building in the background and white plumes of smoke coming from the top.
A number of crews responded to the fire at the under construction building in Halifax’s north end on Tuesday morning. (Daniel Jardine/CBC)

Mike Clark was working on the building adjacent to the one that caught fire. He said he was on the 30th floor when the roof of the other building caught fire and propane tanks blew up.

He said construction crews were then evacuated from the building.

“The elevator was shut down and everyone went down the stairs and out the door,” he said. “Everybody on each floor has a horn to check if anybody was left in the building. Sounded the horn and walked down. It was very organized.”

A number of city buildings are seen, with an under-construction building in the central background with large plumes of black smoke coming from it.
Large plumes of black smoke as seen from a balcony on Tuesday morning. (Submitted by David Sampson)
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