NEW YORK, December 21 (newratings.com) – Crude oil futures traded at around $46 per barrel today on expectations of a surge in the demand for home heating fuels, driven by a possible arctic blast in the US. Light sweet crude for February delivery appreciated 17¢ to $45.95 in early afternoon trade on the New York Mercantile Exchange.
According to an Associated Press report, high oil prices continue to be supported by the tight supply of distillate fuels, which includes heating oil and diesel. The US inventory of distillates, currently 12% lower than the year-ago level, is expected to decline this week. Crude oil prices have remained high in the current year so far on fears of supply disruptions, primarily from key producers such as Iraq, Russia, Saudi Arabia and Nigeria. According to a CNN report, winter is likely to be significantly colder than normal in the eastern United States, the world’s largest market for heating oil. Extreme cold weather conditions would keep oil prices high.
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