Oil prices rise above US$61 in Asian trading

26-Feb-07

As a storm moved toward the U.S. East Coast after dumping 2 feet of snow in the Midwest, Monday morning saw a rise in oil prices in trades in Asia. Trading has been spurred by expectations of strong demand for heating oil. Light, sweet crude for April delivery rose to US$61.41 a barrel in electronic trading on the New York Mercantile Exchange, midmorning in Singapore. This seems to be USA’s last winter storm of the year, passing through the U.S. Midwest toward the East Coast, driving strong demand in heating oil. U.S. inventory figures released last Thursday which showed a larger-than-expected decline in distillates, which include heating oil and diesel, as well as a drawdown in gasoline inventories.