Crude oil fluctuated, after rising for eight days in New York, on forecasts that temperatures in the northern U.S. will climb next week. The weather in the U.S. Northeast, the area responsible for about four-fifths of the country’s heating oil use, will return to normal between Jan. 12 and Jan. 18, according to the Climate Prediction Center of the National Weather Service. Oil surged yesterday on the cold, manufacturing growth in China and the U.S., rising equities and a decline in the dollar. “It looks like the worst of the cold will hit us between Jan. 7 and Jan. 10 before temperatures moderate,” said Tim Evans, an energy analyst at Citigroup Global Markets Inc. in New York. “Traders are actually paying more attention to the S&P and the dollar, neither of which are doing anything. We have to look at these markets for direction.”
Crude oil for February delivery fell 4 cents to $81.47 a barrel at 10:49 a.m. on the New York Mercantile Exchange. Futures reached $81.99 today, the highest intraday price since Oct. 21, when they touched $82. The Standard & Poor’s 500 Index was little changed at 1,133.23. The dollar traded at $1.4423 per euro, down 0.1 percent from yesterday. A weak U.S. currency bolsters the appeal of commodities to investors looking for alternative investments. “It’s a foregone conclusion that we will soon break through last year’s high of $82,” said Peter Beutel, president of trading adviser Cameron Hanover Inc. in New Canaan, Connecticut. “We’re getting some of the coldest weather in years and that’s bound to increase demand”.....Read the entire article.
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