Crude oil futures dipped below the psychological
support of $50 per barrel, but
subsequently climbed above $51 on the forecast of colder than normal weather in the
northeastern past of the USA. The
National Weather Service's latest 8-10 day (up to February 4) forecast expects below-normal
temperatures to continue along the east
coast. The heating demand in New York
will be 4% higher than in the week ended
January 26. Speculative short positions on the NYMEX have come down as per the January 16, 2007 CFTC
report. The commodity seemed to have
found a short-term bottom and is likely
to trade steady during the day.