US Data Abruptly Ends Rally in Crude Oil Futures

Crude oil futures remained below $82 after the fresh weekly US distillate data reflected a decline in US crude stockpiles. With the weather department forecasting below normal temperatures until January 15 for the US Northeast, which consumes about four-fifths of the country’s heating oil, the outlook for fuel demand remains robust. Oil prices remained close to their 14-month high.

The unexpected US inventory data ended the oil’s nine-day rally in which the price of crude futures rose by 14%, driven by cold weather conditions and unfavorable news from Russia. Crude oil for February delivery was at $81.59 a barrel, down $0.18, in electronic trading on the New York Mercantile Exchange (NYMEX) at 3:40 pm Singapore time. The contract had risen by $0.26 to $81.77 yesterday, marking the highest settlement since October 9, 2008. Oil had climbed for nine consecutive days until yesterday.