Oil prices rise due to US cold snap

New York, Jan 8 (IANS) Oil prices went up Tuesday as traders expected the extremely cold weather in the US will boost demand of the fuel.

The National Weather Service said in an advisory that the northern and central parts of the US will expect the coldest temperatures in about two decades this week, with some 140 million people to be impacted.
Combined with gusty winds, the temperatures came in “life- threatening wind chill values as low as 60 degrees below zero ( Fahrenheit or minus 51 degrees Celsius)” in some areas.
Crude prices were boosted by the cold waves in the US, as the consumption of heating oil is expected to surge.
Oil prices were also supported by encouraging German job data. German unemployment fell for the first time in five months, with the number of people out of work in Germany decreasing by 15,000 to 2.965 million in December, the Nuremberg-based Federal Labor Agency said Tuesday.
US international trade deficit in goods and services decreased to $34.3 billion in November from the revised $39.3 billion in October.
The trade deficit shrank more than forecast in November as oil imports dropped to the lowest level in three years and exports rose to a record.
Light, sweet crude for February delivery moved up 24 cents to settle at $93.67 a barrel on the New York Mercantile Exchange, while Brent crude for February delivery gained 62 cents to close at $107.35 a barrel.