Oil Bounces after Fall, US Cold Spell Eases (20/02/2007)

Τρι, 20 Φεβρουαρίου 2007 - 12:29
Oil prices ticked higher on Tuesday after dropping 1 percent a day earlier as traders were torn between supply anxieties in Nigeria and the looming end of winter oil demand in top consumer the United States, Reuters reports. London Brent crude rose 33 cents to $58.47 a barrel by 0702 GMT, remaining mired in the roughly $57-$60 price rut that has defined prices since the start of the month. U.S. light, sweet crude also recovered some of Monday's losses, trading at $58.72 a barrel on the Globex electronic platform. The contract, which expires at the end of the day, was 67 cents lower than Friday's closing price. The New York Mercantile Exchange did not issue a settlement price on Monday as its trading floor was closed for the Presidents Day holiday. Although warnings of fresh violence in the Niger Delta have raised new fears over crude supplies from Africa's top producer, dealers said the approaching end of peak demand in the northern hemisphere was tempering any move higher. "The cold in the U.S. Northeast, which had been supporting prices, is looking to ease this week," said Ken Hasegawa, manager at commodities futures broker Himawari CX in Tokyo. "So the upward pressure on price will ease to some extent, with more room for downside." Energy demand in the U.S. Northeast will be near to below normal for the rest of this week, forecaster DTN Meteorlogix said on Monday.