Crude Oil Climbs From One-Week Low

On February 23, 2014, in Crude Oil Futures News Report, by Infinity Trading

February 23rd, 2014

Crude oil west texas intermediate crude rose from the lowest price in a week amid speculation that cold weather in the U.S. will boost energy demand in the world’s biggest oil consumer. Brent in London gained.

Oil futures increased as much as 0.5 percent in New York, snapping two days of declines. Frigid arctic air will make a return to the Northeast and Midwest this week, according to AccuWeather Inc. Distillate inventories, a category that includes heating oil and diesel, dropped to the lowest level since November in the period ended Feb. 14, the Energy Information Administration said last week.

“Cold weather is good news for oil,” said Michael McCarthy, a chief strategist at CMC Markets in Sydney who predicts investors may sell WTI contracts at about $103 a barrel. “There’s an expected pick-up in demand because of the weather conditions in the U.S.”

WTI for April delivery rose as much as 50 cents to $102.70 a barrel in electronic trading on the New York Mercantile Exchange, and was at $102.61 at 11:31 a.m. Sydney time. The contract fell 0.5 percent to $102.20 on Feb. 21, the lowest close since Feb. 14. The volume of all futures traded was about 25 percent below the 100-day average.

Brent for April settlement was at $110.18 a barrel, up 33 cents, on the London-based ICE Futures Europe exchange. The contract dropped 0.4 percent to $109.85 on Feb. 21. The European benchmark crude was at a premium of $7.57 to WTI.

- Ben Sharples in Melbourne at Bloomberg.