Prices for oil climbed for the second straight day on Monday ahead of the first major snowstorm expected this year in Northeastern US.
However, the gains were limited by the absence of any market disruption on top oil exporter, Saudi Arabia, after the death of King Abdullah.
On Monday morning, light snow began falling on the East Coast region of the US, the first sings of a blizzard that might be potentially historic as officials predicted it could dump around 3 feet of snow the coming day.
Reuters quoted Phil Flynn, Price Futures Group analyst as having said, “Crude is getting some help from supportive heating oil ahead of the blizzard, although with all the flight cancelations, it might end up being a bearish event on oil demand.”
US crude rose 70 cents at $46.29 per barrel after dropping to $44.35 earlier.
Brent climbed 40 cents to $49.19 after a session low of $47.57. US heating oil climbed nearly 2% to $1.6749 a gallon.
According to Bloomberg, Abdalla El-Badri, OPEC Secretary General said insufficient investments might push the prices to around $200 per barrel.
Partner at Again Capital LLC, John Kilduff sad, “The OPEC comments are a reminder that they aren’t going to just sit on the sidelines. This is the first time in a long time that we’ve had OPEC trying to talk up the market.”
Bob Yawger, Director of futures division at Mizuho Securities USA Inc. said, “El-Badri’s comments sparked a little rally. We drilled it down very hard last night. The market came within 15 cents of the recent low.”
Ultra-low sulfur diesel for February delivery climbed 1.8% or 2.97 cents to $1.6764 per gallon. Gasoline futures dropped 0.6% or 0.81% to $1.3398.
To contact the reporter of the story: Jonathan Millet at email@example.com