Oil contract dropped to below U.S. $ 82 per barrel
Economy March 23rd, 2010
The price of crude oil on the New York Mercantile Exchange fell on the second day following the cold weather prediction in the eastern U.S. will subside this week, so potentially cut demand for heating oil.
EarthSat Energy Weather of MDA Federal Inc., institution forecaster, predicts above-normal temperatures will begin to move to the cities in the eastern United States such as New York and Boston this week.
National Weather Service said temperatures average in New York in the first 10 days of this year reached 27 degrees Fahrenheit or minus 3 degrees Celsius. The temperature was 6 degrees below normal.
Northeastern United States is heating oil consuming region at most, four-fifths of the country’s consumption level. ASS itself is the largest oil consumer in the world.
Weather forecast raises speculation declining level of demand, thus pushing the oil prices fell on the second day of trading. “According to weather forecasters, the cold temperatures in the U.S. seems to have subsided. For heating oil and distillate oil demand could be reduced in the weeks and months ahead,” said Ben Westmore, energy and minerals economist at National Australia Bank Ltd., based in Melbourne , Australia.
The price of crude oil contracts for February delivery on the New York Mercantile Exchange fell 53 U.S. cents, or 0.6% to U.S. $ 81.99 per barrel. This contract is traded on the level of U.S. $ 82.13 at 8:33 AM Singapore time yesterday. The price of this futures contract fell 23 cents, or 0.3% to as low as U.S. $ 82.52 per barrel yesterday.
Previously, this oil futures touched $ 83.95 U.S. level, which is the highest level since October 14, 2008. Terdongkrak oil price data of a report mentioning China, as the second largest oil consumer world, to boost the purchase of oil to penetrate the record last year. In addition, oil prices also rose because the dollar weakened against the euro. U.S. dollar always move opposite oil prices.
