Mild US weather keeps crude static

Business Line, New Delhi
Crude oil was little changed on speculation higher-than-normal temperatures in the US may reduce demand for heating fuel.

Crude oil for February delivery rose 9 cents to $61.14 a barrel in after-hours electronic trading on the New York Mercantile Exchange at 11:24 a.m. London time.

Brent crude for February settlement gained 16 cents to $61.02 a barrel on the ICE Futures exchange in London.

US Inventories

US crude oil and heating oil stockpiles were higher than the five-year average in the week ended Dec. 22, the US Energy Department said last week.

Heating demand in the region will be 30 per cent below normal in the week ending Jan. 5, forecaster Weather Derivatives Inc. said last week

OPEC Production

Oil may rise this week on speculation that US inventories will fall for a sixth week as members of the Organization of Petroleum Exporting Countries reduce production, a Bloomberg survey showed Jast week.

Twelve of 26 analysts, traders and brokers, or 46 per cent, said prices will increase this week, while eight expected a drop and six forecast little change.