NewsCold weather pushes oil to ascendPreviousForecastAnalysisCrude contracts gained in the Asian session today to record levels around $82 per barrel, supported by the cold weather dominating the United States, also powered by the positive outlook for the global economy.
Meanwhile, oil prices inclined throughout the US session yesterday to record their highest levels in over a year around $82 per barrel, after the cold weather took control of the northeastern region of the US, which is the biggest energy consumer in the world; expectations increased for a drop in heating oil inventories reported tomorrow in the weekly EIA report, supporting crude prices to continue to trend to the upside.
Yesterday a report showed an expansion in China's manufacturing sector at the fastest pace in about five years. This improvement within the most important country in major industrialized countries supports further rising demand on oil, since it is considered to be a primary substance within numerous industries.
Adding to that, some eastern Asian countries, such as Beijing and Seoul, faced the strongest snowstorms in 50 years supporting demand on heating oil, which will leave positive signs on oil prices throughout the current period.
Furthermore, crude prices were supported by the dollar's drop to the lowest in nearly three weeks, before the release of the expected US data today which are projected to show softness still prevails in the housing sector, the most troubled in the nation; nevertheless, factory orders are expected to have continued to incline in November for the third consecutive month, supporting further the fact that global demand is improving and that the inventory cycle is rising again supporting demand on raw materials and commodities especially oil.
Crude contracts for February delivery opened today at $81.60 per barrel, recording their highest at $81.95 and lowest at $81.50 per barrel, while currently trading around $81.75 per barrel.
The S&P GSCI index closed yesterday at 537.943 recording a 13.32 point gain; meanwhile, S&P GSCI energy index closed at 272.875 after gaining by 7.86 points.