Oil Rallies on Cold Weather despite Fragile Sentiment
BonTradeOil prices rallied although market sentiment remained fragile and the Irish bailout failed to stem contagion risks. The front-month contract for WTI crude oil surged to as high as 85.53 before settling at 85.73, up +2.35%. Fuel prices also jumped with heating oil and gasoline gaining +1.80% and +3.36% respectively. While strong US retail sales report from the National Retail Federation (sale jumped +6.42% over Black Friday Weekend from the same period last year) had helped pushed prices higher, the exceptionally cold weather in the US raised expectations that oil demands will increase. Meteorologists said that temperatures in the eastern half of the US will be lower than normal from December 7 to December 13.
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Oil Rallies on Cold Weather despite Fragile Sentiment
