New York crude futures rebounded above $ 60 a barrel while natural gas prices shot to a record high owing to a cold snap in the US northeast, brokers has said.

New York crude futures rebounded above $ 60 a barrel while natural gas prices shot to a record high owing to a cold snap in the US northeast, brokers has said.

New York’s main contract, light sweet crude for delivery in January, jumped $ 1.45 to close at $ 60.66 a barrel yesterday, topping the $ 60-mark for the first time since November 4.

In London, the price of Brent North Sea crude for January delivery rallied $ 1.69 to finish at $ 58.67 a barrel.

The cold US weather also sent natural-gas futures above $ 15 per million British thermal units (mBtu) for the first time.

The January contract peaked at $ 15.10 per mBtu before settling at a new closing high of $ 14.994.

The market was ‘still focusing on the prospect of cold weather in the US increasing demand’ for heating fuel, Sucden analysts said.

‘Colder-than-normal temperatures are forecast to continue until this weekend, increasing demand and adding support to the market.’

Prices for natural gas, which is a major source of heating energy, were also pushed higher by news from the Department of Energy of a heavy fall in US gas inventories.

Natural-gas stocks fell by 59 billion cubic feet for the week ended December 2 to 3.166 trillion cubic feet, the DoE said.

WTRG Energy analyst Jim Williams said the oil market had overreacted to the natural-gas inventory figures, which still remained high on average for this time of year.

Source : sify.com