Bourse

Home page

Bourse

Crude oil drops on weather forecast

12 January 2010 07:26 (UTC +04:00)

Baku- APA-Economics. Crude oil dropped for a second day in New York on forecasts cold weather in the eastern U.S. will abate this week, curbing heating fuel demand in the worldâ€™s biggest energy user, Bloomberg reported.
Oil declined after a prediction that above-normal temperatures will begin moving into eastern cities including New York and Boston later this week, according to MDA Federal Inc.â€™s EarthSat Energy Weather. The Northeast accounts for about four- fifths of the countryâ€™s heating oil consumption.
Crude oil for February delivery fell as much as 93 cents, or 1.1 percent, to $81.59 a barrel in electronic trading on the New York Mercantile Exchange. Thatâ€™s the biggest intraday drop since Dec. 21. The contract was at $81.91 a barrel at 1:11 p.m. Singapore time.
Futures reached $83.95 yesterday, the highest since Oct. 14, 2008, on a report Chinaâ€™s crude imports reached a record last year. The country is the worldâ€™s second-largest energy consumer.
The dollar advanced against all 16 of its major counterparts, damping the investment appeal of commodities. The U.S. currency climbed as much as 0.4 percent to $1.4454 per euro, from $1.4513 yesterday in New York.
Brent crude oil for February settlement fell as much as 89 cents, or 1.1 percent, to $80.08 a barrel on the London-based ICE Futures Europe exchange. The contract, declining for a fourth day, was at $80.33 a barrel at 1:06 p.m. Singapore time.