Energy prices continue slide
NEW YORK, United States – Not even another winter blast for much of the United States could stop energy prices from sliding again yesterday.
Crude, natural gas and heating oil prices fell even as below-average temperatures were forecast for much of the eastern half of the country through at least the end of the week. Natural gas prices were off by nearly four per cent.
Benchmark crude for March delivery fell 55 cents to settle at US$74.71 a barrel on the New York Mercantile Exchange. Earlier in the session, it dropped as low as US$74.14. In London, Brent crude for March delivery gave up 40 cents to settle at US$73.29 a barrel on the ICE Futures exchange.
Cold and snow from before Christmas into the first part of January helped drive oil prices to a 15-month high earlier this month as homeowners from Chicago to Florida cranked up their thermostats .
But even though huge stockpiles of natural gas and heating oil are being whittled down this winter, supplies are ample.
Colder temperatures in the near term are “expected to increase demand for heating fuels and electricity generation,” Peter Beutel of Cameron Hanover said in his report Tuesday. “As we move forward, the bigger questions with the colder weather are: how cold and for how long?”
Some longer term forecasts into February show temperatures moderating, which also hurts demand for gas.
