Oil Prices Hover Around $62
Oil prices rose slightly in Tuesday as traders in Asia watched U.S. winter weather and anticipated further production cuts by OPEC.
Prices in the last week broke out of the $57 to $62 a barrel band that had held them for nearly two months. On Tuesday, light sweet crude for January delivery was up 16 cents midmorning to $62.60 a barrel in Asian electronic trading on the New York Mercantile Exchange.
The market would strengthen further as demand increased during the northern hemisphere winter. $60 a barrel was the new price floor.
In the short-term future, what's still going to move the market is the weather. Prices dropped a day before on a mild weather forecast for next week, but the winter season — when demand is typically highest — has not officially begun.
What drives oil at the end of the day is good old-fashioned demand.
Cold weather spurs demand for heating oil, pushing prices higher.
Prices were driven above $62 a barrel after a storm in the United States last week and comments from key members of the Organization of Petroleum Exporting Countries that suggest the cartel will push for further cuts in output when it meets Dec. 14 in Nigeria.
Prices in the last week broke out of the $57 to $62 a barrel band that had held them for nearly two months. On Tuesday, light sweet crude for January delivery was up 16 cents midmorning to $62.60 a barrel in Asian electronic trading on the New York Mercantile Exchange.
The market would strengthen further as demand increased during the northern hemisphere winter. $60 a barrel was the new price floor.
In the short-term future, what's still going to move the market is the weather. Prices dropped a day before on a mild weather forecast for next week, but the winter season — when demand is typically highest — has not officially begun.
What drives oil at the end of the day is good old-fashioned demand.
Cold weather spurs demand for heating oil, pushing prices higher.
Prices were driven above $62 a barrel after a storm in the United States last week and comments from key members of the Organization of Petroleum Exporting Countries that suggest the cartel will push for further cuts in output when it meets Dec. 14 in Nigeria.
posted by Ottawa Gas Prices | 8:57 PM
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