Oil drops on warm winter outlook
NEW YORK, December 30, 2015 – Brent crude futures lost around USD 0.50 early Wednesday under pressure from slowing demand and high supplies, as well as reports that the cold weather in Europe and the USA would be short-lived.
West Texas Intermediate futures were down USD 0.69, at USD 37.18 per barrel. Brent settled as USD 37.32 per barrel after a USD 0.47 drop.
Both crude types gained about 3% on Tuesday due to cold weather predictions. However, weather data from multinational media firm Thomson Reuters indicated that temperatures would rise six to eight degrees Celsius in Europe by January 7.
Crude prices have dropped more than two-thirds since mid-2014 due to a supply glut of 500,000 to 2 million bpd.