Warmer than usual weather across the United States and a recovery in crude production from Nigeria have caused oil prices to dip below US$58 a barrel post Christmas. February crude futures fell to US$57.71 a barrel in light trade.
The Northeast of USA is currently experiencing temperatures almost 13-23 degrees Fahrenheit warmer than normal. Overall U.S. heating fuel demand is forecast to be 27% below normal in the week to December 31, with heating oil demand in the key consuming Northeast region about 25% less than usual.
News has also come in that Royal Dutch Shell's (RDSa.L) had managed to restore most of its production in Nigeria after unknown gunmen attacked two pipelines on December 20, losing only 15,000 bpd of output on Monday, down from 180,000 bpd earlier.
Data from China has revealed a flat demand in November for oil, halting several months of strong growth diminishing any scope for a year-end rebound in consumption from the world's No. 2 user.
27-Dec-05 
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