Commodities: Supply glut sends oil lower



LONDON (ShareCast) - Crude oil futures settled lower on Friday on fresh concern about surplus supplies in a key delivery hub in Cushing, Okla, while the stronger dollar also eroded demand.

Crude oil for March delivery settled down 11 cents at $95.72 a barrel on the New York Mercantile Exchange.

Oil prices came under pressure on concern that the key Seaway pipeline is struggling to reduce the supply glut at Cushing, the trading hub for NYMEX oil.

The pipeline's flows have been cut to 175,000 barrels because of terminal capacity issues where the pipeline ends in Texas.

Markets also took fright at reports from IIR Energy that Phillips 66 (NYSE: PSX - news) 's Wood River refinery in Illinois would close late February for heavy maintenance. The closure will add to the glut of oil supplies already in storage at Cushing.

Meanwhile on the ICE Futures exchange in London, March Brent crude struck a high of $119.17 before settling up 1.4% at $118.90 a barrel on Friday.

Among precious metals gold retreated 0.3%, closing below $1,670 for the first time since the end of January.

Gold for April delivery lost $4.40 to settle at $1,666.90 an ounce on the Comex division of the New York Mercantile Exchange.