Commodity Daily News

Crude Prices Decline on Prospects of Warmer Weather

Oil Prices declined Monday as forecasts that the recent streak of freezing temperatures in the U.S is soon ending. Light, sweet crude for February delivery settled 23 cents, or 0.3%, lower at $82.52 a barrel on the New York Mercantile Exchange, after touching an intraday high of $83.95 a barrel.
The frigid weather across the U.S, Europe and parts of Asia has been a key factor behind Oil's rally to 15-month highs as a boost in heating oil demand boosted prices. However, after weeks of freezing temperatures, a January thaw is on the way for U.S. Northeast and Midwest as well as international regions; a return to normal temperatures is expected later this week in Shanghai and Beijing. These places represent the heaviest energy consumers. With milder weather outlook it seems that Oil looses its support as demand concerns resurface.