Crude oil prices fell heavily in London today as milder weather in the US helped to ease concerns about low supplies of heating fuel during the northern hemisphere winter.
London's Brent oil price slid as traders, returning to their desks for the first time since December 31, took their cue from steep losses seen in New York yesterday, while awaiting weekly statistics on US petroleum inventories.
The price of Brent North Sea crude oil for delivery in February slumped $1.01 to $39.45 a barrel in late afternoon deals. New York's main contract, light sweet crude for delivery in February, rose three cents to $42.15 a barrel in electronic dealing this evening, after closing down $1.33 yesterday.
Traders were expected to closely study tomorrow's release of the weekly report of US petroleum stockpiles, with the northern winter firmly underway.
The US government report a week ago showed crude oil inventories eased 800,000 barrels to 295.1 million in the week that ended December 24. Distillates - mostly heating fuel and diesel - fell 800,000 barrels to 119.1 million. Heating fuel stockpiles alone dropped a million barrels to 48.9 million.
Gasoline inventories unexpectedly rose, climbing 900,000 barrels to 212.3 million.
