Oil Prices Jump Ahead of Blizzard Warning
Published By : 27 Jan 2015 | Published By : QYRESEARCH
After hitting all time low due to overproduction and declining demands, oil prices seem to be recovering now. They were up for the second day in continuation on Monday ahead of a speculated snowstorm expected to hit the North-eastern regions of the U.S.
Oil prices were up for a second straight day on Monday ahead of the first major snowstorm expected this year in the U.S. Northeast.
However, gains in prices remained limited due to the absence of any form of market disruption following the death of Saudi Arabia's king Abdullah.
Other factors that limited rise in oil prices included the 11-year high achieved by the U.S. dollar against other important national currencies and the rising fears of instability hovering upon the Europe after Greek saw the victory of the left-wing Syria party.
The east coast of the U.S. observed light snowfall on Monday morning. Officials predict that this could be the first sign of a historic blizzard that could potentially lead to snowfall as high as 3 feet in the coming day, making transportation of millions of people difficult.
Regarding the projected heavy snowfall, the national weather service (NWS) has issued a warning for the New York City and areas between Connecticut and New Jersey about heavy snowfall beginning at 1:00 p.m. on Monday, and worse during Monday night and Tuesday morning. The NWS has also warned of winter storms across Maine to Pennsylvania in these two days.
Crude oil is getting some push due to increasing demand for supportive heating oil ahead of the snowstorms. Although due to all the cancellation of flights, this event might end up being rather tolerable for oil demands, state analysts at Chicago-based Price Futures Group.