Washington, January 12: The price of crude oil dropped under 82 US dollars today on expectations of easing heating fuel demand as warmer temperatures reach parts of the United States recently hit by a cold snap.
New York’s main futures contract, light sweet crude for delivery in February fell 72 US cents to US$81.80 dollars a barrel.
The New York contract had hit a 15-month peak of US$83.95 dollars a barrel on Monday before traders decided to bank profits.
Elsewhere, Brent North Sea crude for February was down also by 72 US cents at US$80.25 dollars in midday London trading.
Weaker oil prices “are the result of weather forecasts in the United States that the temperatures would be moderating this week,” said Purvin and Gertz energy consultancy analyst Victor Shum.
“It looks like in the US the cold snap is coming to an end.”
Kuwait’s Oil Minister Sheikh Ahmad Abdullah al-Sabah today said that at around 82 US dollars, the price of crude oil was “fantastic”.
Oil prices are “fantastic… because of what is happening with the (cold) weather in Europe and as demand is picking up,” the minister told reporters outside parliament.
—Agencies