February Crude Oil Trading Thread

Crude Oil Declines as Mild U.S. Weather Curbs Fuel Consumption

By Mark Shenk

Dec. 26 (Bloomberg) -- Crude oil fell more than 2 percent in New York, the biggest drop in six weeks, as mild U.S. weather curbs heating-fuel consumption.

Home-heating demand in the Northeast, the region responsible for 80 percent of U.S. heating-oil use, will be 26 percent below normal through Jan. 2, said Weather Derivatives, a forecaster in Belton, Missouri. Natural gas, a competing fuel, plunged more than 7 percent on the mild weather. Some users switch between oil-based fuels and natural gas depending on cost.