Heating oil tumbles despite cooler weather forecasts

Source: Dukascopy Bank SA
© Scanpix/Reuters
Energy futures were mixed on Monday as traders readjusted their positions ahead of January contract expiration due on Tuesday. Meanwhile, weaker US Dollar was supportive for the commodity group. Moreover, expectations for monetary easing in Japan after the Liberal Democratic party won general elections on Sunday pushed energy futures higher.

Crude oil prolonged its rally ahead of January contract expiration. Weaker greenback and positive demand outlook in Asia also lifted the commodity futures.

Brent oil slid despite escalated tensions in the Middle East.  UN's humanitarian chief called Syria to allow oil imports to provide aid to refugees, thus easing humanitarian crisis in the country.

Natural gas was the top-gainer, bouncing off a three-month low after the weather forecasts indicated cooler weather in the most US territory next week. Cooler weather is likely to boost demand for heating fuel.

Heating oil sank despite cooler weather forecasts in the US. An unexpected increase in the US supplies last week put heavy pressure of the commodity.


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