Related News
Oil falls as cold eases grip
Source: Agencies |
January 13, 2010, Wednesday
|
Online Edition
Online Edition
OIL prices fell for a second day yesterday as a global cold spell eased its grip and pulled crude back from a 15-month high.
Benchmark crude for February delivery fell US$1.73 to settle at US$80.79 a barrel on the New York Mercantile Exchange. It's the first time this year a barrel has closed below US$81.
Crude prices have jumped 20 percent in the past month as the coldest weather in years took hold. The weather has boosted demand for heating oil in the U.S. Northeast, and natural gas almost everywhere.
Even in the South, where fruit crops were endangered by frigid temperatures, homeowners were reaching for the thermostat.
Duke Energy said yesterday that its customers in the Carolinas set a record on Monday for power demand during the winter.
Yet the dollar has had more to do with rising energy prices than the cold.
Every time the dollar falls, more investors pile money into dollar-based crude trades. Investors can get more crude for less if they hold euros or other relatively strong currencies.
The government said yesterday that it expects U.S. retail gasoline prices to average US$2.84 per gallon (75 cents a liter) this year, an increase of 49 cents a gallon from 2009. The Energy Information Administration said prices are likely to pass US$3 per gallon during the spring or summer, largely because of rising crude prices.
Those prices are rising even though the EIA said gasoline consumption was flat in 2009 compared with 2008 when the economy was in a tailspin.
There are already signs that the recent bout of cold is losing its power over energy prices. Most meteorologists see temperatures moderating for the rest of the month.
In other Nymex trading in February contracts, heating oil fell 4.83 cents to settle at US$2.1318 a gallon and gasoline slipped 4.49 cents to settle at US$2.0978 a gallon. Natural gas futures rose 13.7 cents to settle at US$5.591 per 1,000 cubic feet.
In London, Brent crude for February delivery fell US$1.67 to settle at US$79.30 a barrel on the ICE Futures exchange
Benchmark crude for February delivery fell US$1.73 to settle at US$80.79 a barrel on the New York Mercantile Exchange. It's the first time this year a barrel has closed below US$81.
Crude prices have jumped 20 percent in the past month as the coldest weather in years took hold. The weather has boosted demand for heating oil in the U.S. Northeast, and natural gas almost everywhere.
Even in the South, where fruit crops were endangered by frigid temperatures, homeowners were reaching for the thermostat.
Duke Energy said yesterday that its customers in the Carolinas set a record on Monday for power demand during the winter.
Yet the dollar has had more to do with rising energy prices than the cold.
Every time the dollar falls, more investors pile money into dollar-based crude trades. Investors can get more crude for less if they hold euros or other relatively strong currencies.
The government said yesterday that it expects U.S. retail gasoline prices to average US$2.84 per gallon (75 cents a liter) this year, an increase of 49 cents a gallon from 2009. The Energy Information Administration said prices are likely to pass US$3 per gallon during the spring or summer, largely because of rising crude prices.
Those prices are rising even though the EIA said gasoline consumption was flat in 2009 compared with 2008 when the economy was in a tailspin.
There are already signs that the recent bout of cold is losing its power over energy prices. Most meteorologists see temperatures moderating for the rest of the month.
In other Nymex trading in February contracts, heating oil fell 4.83 cents to settle at US$2.1318 a gallon and gasoline slipped 4.49 cents to settle at US$2.0978 a gallon. Natural gas futures rose 13.7 cents to settle at US$5.591 per 1,000 cubic feet.
In London, Brent crude for February delivery fell US$1.67 to settle at US$79.30 a barrel on the ICE Futures exchange
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
