Inclement weather in many regions of the globe's top consumer and increased supplies prompted West Texas Intermediate crude oil futures to ebb and flow as the first full trade week of the new year began, according to Bloomberg.
The coldest wave of cold air in nearly two decades is making its way east via the central region of the U.S. Supplies of gasoline and distillate fuels like diesel and heating oil pushed to their top level in two months for week ended December 27, according to government data released this past Friday.
WTI crude oil futures endured its largest weekly drop since the middle of 2012 last week.
"This cold weather is staving off some selling pressure, but it's probably just going to be temporary," analyst and broker Gene McGillian with Tradition Energy in Stamford, Connecticut told Bloomberg on Monday. "We still have a lot of inventories. Crude is moving in a $10 band from $90 to $100."
At 11:04 am. on Monday, WTI crude oil futures edged up 0.06 percent, a 6-cent climb to $94.02 per barrel. Brent crude oil futures rose 0.35 percent, a 37-cent lift to $107.82 per barrel.
WTI crude oil futures endured losses of 6.3 percent last week, which marked their worst week since June 2012.
The high temperature in Chicago for Monday still will be lower than zero degrees Fahrenheit but it might push past that level on Tuesday, according to the National Weather Service. The low temperature in New York City and Washington as the trade week begins is seven degrees. Dallas, Texas will see temperatures drop to 19 degrees. Orlando in Central Florida is poised to see temperatures check in at 30 degrees.
As the system pushes to the East, the nation's northeast is prepared for the freezing cold.
"We are seeing a market that's supported by cold temperatures," senior market analyst Phil Flynn with the Price Futures Group in Chicago told the news source on Monday. "We definitely have a well-supplied market."
Increased supplies pull down prices
Working against the price of the energy commodity on Monday was the likelihood of increased supplies, according to MarketWatch.
Libya is likely to increase production as a result of demonstrators ceasing several months of protests and blockades at a major oil field in the oil-rich North African nation. The El Shahara oil field has resumed the production of 60,000 barrels per day, according to the National Oil Corporation of Libya.
In addition to the possibility of that figure climbing, two additional oil fields have resumed production after having been shuttered for past several months.
U.S. dollar, Chinese data impact futures
The energy commodity's losses thus far this year are linked with an emboldened U.S. dollar and tepid economic data released by China as of late, according to one financial institution.
The U.S. dollar "has appreciated noticeably in the wake of a series of positive U.S. economic data, making crude oil more expensive for buyers outside the dollar zone," states a Monday research note authored by analysts with Commerzbank Commodity Research, according to MarketWatch. "In addition, there have been weaker economic figures from China, which has given rise to concerns about demand."
Reuters reports China, the globe's second-largest consumer of the energy commodity, released economic data noting the services sector fell to its lowest level in about 180 days last month.
That demonstrates the Asian nation was on the slip late last year and it underscores concerns about the country's prospects for success as the new year begins.
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