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Oil rises above $31 as cold weather supports

Published 01/22/2016, 06:35 AM
© Reuters.  Oil prices strengthen as cold front sweeps US, Europe
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Investing.com - U.S. oil futures rose above $31 a barrel on Friday, as cold front sweeping the U.S. and Europe supported demand.

U.S. crude futures for February delivery were last at $31.02 a barrel, up 4.99%.

On the ICE Futures Exchange in London, the March Brent contract was up 6.09% at $31.05 a barrel.

Freezing weather conditions and snowstorms in the U.S. East Coast and parts of continental Europe, boosted demand for heating oil and helped strengthen oil.

The cold weather in North America and Europe follows an extremely mild start to winter in large parts of the northern hemisphere, which had dampened oil consumption.

U.S. oil futures had plunged below $27 dollars a barrel on Wednesday for the first time since 2003, caught in a broad slump across world financial markets as investors worried that a huge oversupply in crude was coinciding with an economic slowdown, especially in China.

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