温和的天气forecast in USA limits heating oil demand

Mild weather has been forecast in the United States, the world's biggest heating oil market. Till date this season, winter has been mild in the Northeast, and normal to above-normal temperatures are expected to prevail over the next few days. This weather forecast will limit heating oil demand and has triggered a fall in oil prices. Oil futures in New York trading closed at US$42.12 a barrel. Mild temperatures will give refiners a chance to increase inventory levels, which stood 12% percent below their year-earlier levels at the end of 2004. Oil prices rose 34% in 2004, aided by a mix of unexpectedly strong growth in demand, and limited spare capacity for refining and production. Oil is down more than US$13.50 from its peak of US$55.67 a barrel in late October. Last week in Saudi Arabia, suicide bombers tried to storm the interior ministry and a security unit in Riyadh, the capital, reviving worries about supply from the region. In addition, Iraq's stop-and-start oil exports through its northern pipeline to Turkey have been idle for two weeks because of sabotage.