Expectation of Warmer Weather Conditions Cool Oil Prices

Oil prices declined below $82 a barrel today. This was aided by expectations of the cold wave subsiding in several parts of the US, Europe and Asia in the forthcoming weeks, which would weaken the demand for crude.

Benchmark crude for February delivery slipped $0.61 to $81.92 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange (NYMEX). The oil futures had formed a new 15-month high of $84 a barrel on Monday, after a weakening US dollar helped push the prices up, before settling down at $82.52.

Meanwhile, natural gas futures for February were up $0.026 at $5.48. However, heating oil futures fell $0.017 to $2.16 a gallon and gasoline slipped $0.0132 to $2.13 a gallon at the NYMEX. Moreover, Brent crude for February delivery fell $0.64 to $80.33 a barrel on the ICE futures exchange.