Oil Price Above $100 On US Heating Fuel Demand

The price of oil extended gains above $100 a barrel Monday as the cold weather in the United States increased demand for heating fuels and solid Chinese credit numbers eased concerns over the world's second-biggest economy.

By midday, benchmark U.S. crude for March delivery was up 62 cents to $100.92 a barrel in electronic trading on the New York Mercantile Exchange. On Friday, the Nymex contract fell 5 cents to close at $100.30.

"The ongoing cold weather in the U.S. is continuing to lend support to energy prices," analysts at Commerzbank in Frankfurt said in a note to clients.

They added that prices are likely to correct, possibly as much as several dollars, once the cold weather abates, as happened at the start of last year.

For now, though, oil prices have been supported by favorable credit growth numbers from China, which suggested the Chinese economy is not suffering a dramatic slowdown.

Lending by Chinese banks and in the largely unregulated underground market rebounded to 2.6 trillion yuan ($430 billion) in January from December's 1.2 billion yuan, according to the central bank. Lending usually surges at the start of a new year but January's rise exceeded forecasts and might help to ease worries about cooling retail sales, manufacturing and other activity.

Brent crude, which is used to set prices for international varieties of crude, was flat at $109.18 on the ICE Futures exchange in London.

In other energy futures trading in New York:

  • Wholesale gasoline rose 2 cents to $2.82 per gallon.
  • Heating oil added a penny to $3.09 per gallon.
  • Natural gas jumped 24 cents to $5.45 per 1,000 cubic feet.

Copyright 2015 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Contracts Advisor
Expertise: Budget / Cost Control|Contracts Engineer|Supply Chain Management
Location: San Ramon, CA
Maintenance Services Sales Director
Expertise: Sales
Location: Houston, TX
Executive Assistant
Expertise: Executive|Secretarial or Administrative
Location: United States
search for more jobs

Brent Crude Oil : $52.67/BBL 1.91%
Light Crude Oil : $51.6/BBL 2.60%
Natural Gas : $3.17/MMBtu 2.76%
Updated in last 24 hours