Crude oil rose on forecasts for colder U.S. weather over the next two weeks that would increase demand for heating fuels.
Heating use in the Northeast, the region responsible for 80 percent of U.S. heating-oil consumption, will be 7 percent above normal in the week ending Jan. 29, Belton, Missouri-based forecaster Weather Derivatives said. Warmer-than-normal weather curbed demand for heating fuels, contributing to a 13 percent plunge in oil prices so far this year.
``The change in the weather is supporting crude oil and all of the other energy markets,'' said Eric Wittenauer, an energy analyst at A.G. Edwards & Sons Inc. in St. Louis. ``It's not going to get above freezing in much of the East today, which will boost heating-oil consumption.''
Crude oil for February delivery rose $1.16, or 2.2 percent, to $53.15 a barrel at 10:27 a.m. on the New York Mercantile Exchange. Futures touched $49.90 on Jan. 18, the lowest since May 25, 2005. Prices are 22 percent lower than a year ago.
Heating use in the Northeast, the region responsible for 80 percent of U.S. heating-oil consumption, will be 7 percent above normal in the week ending Jan. 29, Belton, Missouri-based forecaster Weather Derivatives said. Warmer-than-normal weather curbed demand for heating fuels, contributing to a 13 percent plunge in oil prices so far this year.
``The change in the weather is supporting crude oil and all of the other energy markets,'' said Eric Wittenauer, an energy analyst at A.G. Edwards & Sons Inc. in St. Louis. ``It's not going to get above freezing in much of the East today, which will boost heating-oil consumption.''
Crude oil for February delivery rose $1.16, or 2.2 percent, to $53.15 a barrel at 10:27 a.m. on the New York Mercantile Exchange. Futures touched $49.90 on Jan. 18, the lowest since May 25, 2005. Prices are 22 percent lower than a year ago.
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