Oil prices drop ahead of US report

SINGAPORE – Oil prices fell yesterday as the morning market adjusted after large gains the day before and awaited the weekly US inventories report, which was expected to show an increase of gasoline stockpiles but a fall in distillates such as heating oil.

Oil and natural gas prices jumped Tuesday on expectations of more cold weather in the United States and renewed concerns about Opec production cuts. Oil traded as high as US$57,05 before falling back to settle at US$56,97 a barrel, a gain of US$2,96.On Wednesday, early trading seemed to be adjusting those price gains.Light, sweet crude for March delivery fell 42 cents to US$56,55 in midmorning Asian electronic trading on the New York Mercantile Exchange.Natural gas dropped 7,3 cents to US$7 667 per 1 000 cubic feet.A day earlier, it had soared more than 80 cents, or 11,6 per cent.The market has been responding to forecasts that predict temperatures will dip below freezing in the US Midwest, the heart of the natural gas market.Colder-than-normal temperatures are also expected through mid-February in the Northeast, which is responsible for 80 per cent of the country’s heating oil consumption.Nampa-AFPOil traded as high as US$57,05 before falling back to settle at US$56,97 a barrel, a gain of US$2,96.On Wednesday, early trading seemed to be adjusting those price gains.Light, sweet crude for March delivery fell 42 cents to US$56,55 in midmorning Asian electronic trading on the New York Mercantile Exchange.Natural gas dropped 7,3 cents to US$7 667 per 1 000 cubic feet.A day earlier, it had soared more than 80 cents, or 11,6 per cent.The market has been responding to forecasts that predict temperatures will dip below freezing in the US Midwest, the heart of the natural gas market.Colder-than-normal temperatures are also expected through mid-February in the Northeast, which is responsible for 80 per cent of the country’s heating oil consumption.Nampa-AFP