Posts Tagged ‘heating oil’
Oil Gains on Signs of Growing Demand
Oil gained as US consumers spent over the Thanksgiving weekend more than in previous year, suggesting that demand for commodities, including fuel, may increase. The National Retail Federation reported that about 212 million shoppers went to stores and websites over the holiday weekend in the US, on average spending $365.34. The average US shopper increased purchases by 6.4 percent compared to the previous year.
Cold weather may increase demand for heating fuel in the eastern part of the US and in Europe. Temperatures forecast to be lower than normal from December 7th to December 13th in the eastern half of the US. Temperatures in Paris may be as low as minus 5 degrees Celsius today, compared with an average minimum of 4 for this time of the year, while temperatures in London may drop to minus 6 on December 3rd.
The January future for oil delivery added $0.08 to $85.81 per barrel on NYMEX. January settlement for Brent crude gained $1.76 (2.1 percent) to $87.34 per barrel on ICE yesterday.
Oil Advances on Cold Weather Forecast
Oil gained after forecast about winter storms in the U.S. this week. The National Weather Service is predicting that temperatures will be below average for the next 6–10 days. According to weather forecast Washington temperatures will be 10 degrees Fahrenheit (12 degrees Celsius) below normal as of February 14th, while New York will be 8 degrees below average by February 13th.
U.S. inventories of distillate fuel, including heating oil and diesel, decreased last week after temperatures fell. OPEC governor stated today that global oil supplies are enough to satisfy demand for the first half of 2010.
March delivery for crude oil advanced $0.73 cents (1 percent) to $71.92 per barrel by 11:58 on the New York Mercantile Exchange. March delivery for heating oil rose $0.016 (0.9 percent) to $1.8908 per gallon. March settlement for Brent crude gained $0.61 (0.9 percent) to $70.20 per barrel on ICE.
Sugar Climbs on Damaged Cane in Florida, Crude Oil Falls
Sugar jumped on speculation that low temperatures harmed cane crops in Florida. The cold was especially harmful to cane planted between September and December. The exact appraisal of damage done to plant is not yet done. March futures for
Crude oil tumbled to the lowest in two months as China, the biggest consumer in the world, have taken measures to prevent the economy from “overheating” and slow a credit boom. Oil prices also dropped after forecasts that temperature in the U.S. will rise this week, curbing demand for heating oil. February delivery for crude oil slid $1.73 (2.1 percent) to $80.79 per barrel at 14:30 on NYMEX. Futures went up to $83.95 per barrel yesterday.