Light, sweet crude for March delivery rose to US$59.40 a barrel in electronic trading on the New York Mercantile Exchange midmorning in Singapore. Nymex crude rose to US$59.99 a barrel in floor trading on Tuesday. As the winter in Northeast USA persists, oil prices rose but failed to break the key psychological $60-a-barrel level. Release of weekly U.S. petroleum inventories is also awaited later in the day, wherein strong winter demand for heating fuels is expected to show a decline of 2.9 million barrels of distillate stocks on average.
The National Oceanic and Atmospheric Administration continues to forecast below-normal temperatures across the U.S. Northeast, where 80 percent of the nation's heating oil demand comes from, until at least Feb. 19. Based on weather forecasts, US heating oil demand is forecast to be 20% above normal next week, hence prices will likely be supported in the coming days.
07-Feb-07 
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