Warm Weather Anticipation Causes Oil Prices to Fall

Oil prices fell after a seven-week high as temperatures in the eastern U.S. are expected to rise beofre the end of the month.

“There are forecasts out there that show it’s going to turn milder again,” said Man Financial broker, Kevin Blemkin. The freeze “is only going to be lasting for a short length of time” and warm weather has predominated this winter, he said.

According to Reuters,

“U.S. oil futures were down 28 cents at $48.10 a barrel after a round of profit-taking knocked the market off its peak of $49.50 on Tuesday, the highest level since Nov. 30.

Prices are up 11 percent since the year started, boosted by the approach of the season’s severest cold snap in the U.S. Northeast, the world’s biggest heating oil market.”

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