Commodity Blog

Crude oil gained in New York, touching a record level in 10 years, as cold weather in the U.S. pushed up prices for heating oil. Frosts will spread over the U.S. Midwest in the next five days, while most of the East and South will stay below normal through the middle of January.

Heating oil reached a 13-month record after forecast that temperatures through mid-January would be below normal. U.S. distillate supplies, including diesel fuel and heating oil, declined 2.06 million barrels (1.3 percent) to 159.3 million barrels last week. Refineries will need more crude oil to produce heating oil after its stockpiles have shrunk.

OPEC raised output this month to benefit from growing rising prices. The 11 members of the Organization of Petroleum Exporting Countries increased supplies by 115,000 barrels per day to 26.615 million per day.

February delivery for crude increased $0.4 (0.5 percent) to $79.68 per barrel by 11:09 on the New York Mercantile Exchange.

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