US demand for heating fuels is expected to be about 34% below normal this week because of mild temperatures in the main heating regions of the country. Oil prices fell from three-month highs on Monday, due to mild US weather, though turmoil in the Middle East curbed losses. US light sweet crude traded at US$63.20, while London Brent crude fell to US$61.79.
Middle Eastern tension has supported prices.
Israeli Prime Minister Ariel Sharon last week suffered a massive stroke and medical consensus was that he would be unable to return to politics, creating a void in the Middle East peace process.
Oil producer Iran was also causing concern as it confirmed it would resume research on nuclear fuel. If Iran goes ahead with the research, diplomatic efforts to resolve the row would be endangered and Iran could be referred to the UN Security Council for possible sanctions. But for now oil supplies appeared to be ample.
11-Jan-06 
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