Oil prices dip by more than two dollars - below US$59 a barrel

04-Jan-07

Crude oil prices plunged 4.5% on Wednesday as demand for heating fuels dipped, triggered by persistent mild weather in the United States. Light, sweet crude for February delivery on the New York Mercantile Exchange fell $2.73 from Friday's settlement price to a six-week low of $58.32 a barrel. It was the biggest one-day drop since Aug. 17, 2005, when crude fell $2.83 to settle at $63.25 a barrel. The Nymex trading floor had been closed Monday for New Year's Day and again on Tuesday for memorial services for former U.S. President Gerald Ford. Temperatures in New York City were in the 50s on Wednesday, and are expected to surpass 60 degrees over the weekend. Forecasters are saying the warmer-than-normal temperatures in the Northeast United States will continue through January