NEW YORK, United States – Oil and heating oil prices got a boost yesterday as the second powerful storm in four days threatened to dump more than a foot (0.3 metres) of snow on the East Coast. A weakening dollar was also a factor.

Crude oil prices moved higher for the second straight day, in part because of the weather. Benchmark crude for March delivery jumped US$1.86 to settle at US$73.75 a barrel.

In London, Brent crude gained US$2.02 to settle at US$72.13 on the ICE futures exchange.

Traders often buy commodities such as oil as a hedge against inflation and a weaker dollar and sell them when the US currency rises. Oil, which is priced in dollars, become less expensive in other currencies when the greenback weakens.

The euro bought US$1.3775 in late New York trading, up from US$1.3671 late Monday.

The storm was expected to drop about as much snow in parts of the Midwest before making its way to the big heating-oil consuming states in the Mid-Atlantic and New York by Tuesday afternoon and evening. As much as 20 inches (50 centimetres) of snow are expected in Washington, 18 inches (45 centimetres) for Philadelphia and maybe a foot (30 centimetres) or more in New York City.

Parts of the Mid-Atlantic region were buried with nearly three feet (one metre) of snow over the weekend.

Coupled with forecasts for colder-than-normal temperatures through at least mid-February, demand for heating oil will continue to be as strong as it has been for much of the winter.

Wholesale heating oil prices rose 5.18 cents to settle at US$1.9373 per gallon on the New York Mercantile Exchange yesterday

Eventually, that jump in prices could result in higher retail prices as people in the Northeast, who consume 80 per cent of the heating oil used in the US, likely will need to fill up their tanks one more time before spring arrives.