Oil
prices rising in Winter of 2010
Current
Events Affecting Oil Prices
Oil prices
boosted by frigid weather
NEW YORK
(Dow Jones)--Crude futures are higher Monday, trading above $81
a barrel, bolstered by frigid temperatures across much of the
northern hemisphere. Light, sweet crude for February delivery
recently traded $1.93, or 2.4%, higher at $81.29 a barrel on the
New York Mercantile Exchange. Brent crude on the ICE futures exchange
traded $1.91, or 2.5%, higher at $79.84 a barrel.
The U.S. and
Europe are experiencing a prolonged cold snap, lifting heating
oil demand, while parts of Asia are also facing chilly weather.
China is expected to see some of the lowest temperatures in decades
over the next few days, the AFP reported. .
Source:
London
AFP article of January 4, 2010
___________________________________________________________________________
Crude Oil
Prices Expected to Drop in January
Jan. 7 (Bloomberg)
-- Crude oil fell in New York, snapping 10 days of gains, on concern
the current rally is unsustainable after a U.S. government report
yesterday showed an unexpected increase in stockpiles. Traders
are selling contracts to lock in gains from the 15 percent climb
in crude prices since Dec. 21. The Energy Department said crude
oil inventories rose 1.3 million barrels last week. Inventories
were forecast to fall, according to a Bloomberg News survey.
“When you
get these rallies, sometimes the market just needs to catch its
breath,” said Clarence Chu, a trader with options dealers Hudson
Capital Energy in Singapore. “I don’t think this rally is sustainable.
Fundamentally the support just isn’t there; we should be back
below $80.” Oil for February delivery declined as much as 53 cents,
or 0.6 percent, to $82.65 a barrel in electronic trading on the
New York Mercantile Exchange. It was at $82.75 a barrel at 11:41
Singapore time. .
Source:
Bloomberg
Energy published January 7, 2010
___________________________________________________________________________
Summary
and Comment by Ranco
Conflicting
pressures have resulted in unpredictable prices for the near future.
While rising prices are likely for the remainder of the heating
season, these rises will be mitigated to some degree by downward
trends in economic activities. Anticipating rises through the
winter, Ranco purchased a full season supply of oil futures
before December 2009, and thus, we will not be affected by
price increases for the remainder of 2010. Oil delivery companies
that have not purchased futures will be hurt by high rack prices
through the winter.
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