Mild Weather Leads to Lower Oil Prices
With milder weather in the U.S. decreasing demand, oil prices fell to nearly their lowest in four weeks.
“Mild weather in the United States’ northeast has depressed heating oil prices, with forecasters predicting above-normal temperatures for the next week to 10 days,” said analysts from the Sucden brokerage firm.
“If we see warmer-than-normal weather for the rest of the month, you could see refiners build up inventories of gasoline and that will create pressure on crude prices,” said Schroders Plc head energy analyst, Craig Pennington.
Traders were also concerned the G7 meeting which urged countries that produce oil to increase their output and consumers to increase energy efficiency.
“We recognised the importance of raising medium-term energy supply, of energy efficiency, and of the importance of technology and innovation in ensuring energy security,” the G7 said in a statement at the end of the meeting.
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