Crude oil prices advanced Monday, as bitterly cold weather in Europe and the United States boosted expectations of rising heating fuel demand over the Christmas holiday period. New York's main contract, light sweet crude for January delivery, gained 79 cents to 88.81 dollars.
Brent North Sea crude for delivery in February climbed 1.07 cents to 92.74 dollars a barrel in London trade. "Crude oil prices rose slightly higher... as freezing conditions in Europe and the US north-east increased the demand for heating oil," said analyst Myrto Sokou at the Sucden brokerage in London. "The oil market received further support amid renewed tensions in the Korean peninsula, as South Korea launched live-firing drills from a disputed island today."
Thousands of stranded travellers spent the night in airports across Europe as more flights were cancelled Monday because of snow and ice, extending travel misery just days before Christmas. After a weekend of disruption at major European hubs such as London, Paris, Frankfurt, Amsterdam and Brussels, airports struggled to clear the backlog as passengers tried to reach their destinations in time for December 25. Prices were likely to rise as the cold fronts in Europe and north-eastern United States were set to continue and as freezing weather was also expected to hit central and eastern Asia, according to J.P. Morgan analysts.
Comments
Comments are closed for this article.