Oil Settles Up 1% as Cold Weather in US, Europe Drives Winter Fuel Demand
Oil prices rose more than 1% on Thursday as cold weather gripped parts of the United States and Europe, boosting winter fuel demand.
Brent crude futures settled up 76 cents, or 1%, at $76.92 a barrel. U.S. West Texas Intermediate crude futures settled up 60 cents, or 0.82%, to $73.92.
On Wednesday, both benchmarks fell more than 1%.
Thursday's rise is "definitely winter fuel demand kicking in here in the U.S.," said John Kilduff, partner at Again Capital in New York.
Parts of east Texas up to west Virginia were under a winter storm warning on Thursday, according to the National Weather Service, covering large swathes of Arkansas, Tennessee and Kentucky.
Ultra-low sulfur diesel futures were trading at around $2.38 a gallon, their highest since Oct. 8, according to data from LSEG.
JP Morgan analysts estimate that for the United States, Europe and Japan, for every degree Fahrenheit the temperature drops below its 10-year average, there is an increase of 113,000 barrels per day (bpd) in demand for heating oil and propane "as teeth-chattering temperatures prompt consumers to crank up their heat."
Source : Reuters
