Crude prices higher on weather forecast

Crude oil prices rose to begin the New Year on Monday, starting out at nearly twice its price at the beginning of last year on a weaker US dollar and on weather forecasts in the United States.

February contracts for West Texas Intermediate crude were $2.15 higher to $81.51 per barrel on the New York Mercantile Exchange, while February Brent crude added $1.95 to $79.88 per barrel on the ICE Futures Europe exchange in London.

The National Weather Service predicted that temperatures will remain below normal in the eastern half of the United States, a region which accounts for up to 80 percent of the nation’s heating oil consumption, at least through 17 January.

Nymex February gasoline was up 5 cents to $2.10 per gallon, while February heating oil added 7 cents to $2.19 per gallon and March natural gas gained 31 cents to $5.84 per million British thermal units.

The retail price of gasoline in the United States was up less than a cent overnight, to $2.663 per gallon, a dollar more than it was last year at this time.

Meanwhile, US refiners were working at their slowest pace since reporting began in 1990 as gasoline demand remains weak.