SH: Commodities Oil falls as big freeze comes to an end
LONDON (SHARECAST) - The prospect of warmer weather and reduced demand for heating fuels drove crude oilprices lower on Monday.
US light crude oil for February delivery dropped 47 cents to settle at $82.28 a barrel on the New York Mercantile Exchange. Oil prices had pushed to a high of $83.95 earlier in the session, spurred by a weaker dollar and months of freezing temperatures in parts of the US.
However weather forecasters are now predicting warmer temperatures in the next few weeks. While a big thaw is expected at the end of January, forecasters are also warning February could bring another cold snap.
Demand for commodities was to some extent buoyed by strong Chinese import data. Data out Sunday showed China's imports jumped 55.9% last month while exports increased 17.7%.
Comex gold for February delivery rose $13.20 to settle at $1,151.40 an ounce.
The better than expected data from China bumped prices higher while the weaker dollar encouraged interest in the yellow metal.
