MARKET EYE: Europe's Cold Snap Boosts Oil Markets

摘要

Frigid weather across Northern Europe has pushed gas oil prices to 26-month highs. The December ICE contract was trading at around $776 per metric ton on Tuesday, a level not seen since October, 2008. The main driver for this has been a severe cold snap in northern Europe. Although this week brought some respite, colder weather is expected to return and possibly remain in place until the start of the new year. This has boosted demand for heating across the region, although the increase has been more pronounced in certain areas. The blast of icy-cold weather has stoked heating oil demand in France and Scandinavia-but German homeowners appear content to run down tanks filled in October and November.