BELARUS NEWS AND ANALYSIS

DATE:

02/01/2007

Oil prices slip

NEW YORK - Oil prices slipped in quiet trading Tuesday, turning lower on warmer than usual winter weather in the United States and expectations of an agreement between Russia and Belarus over natural gas prices.

In early afternoon electronic trading, light sweet crude for February delivery on the Nymex fell 19 cents to $60.86 a barrel.

The market's short-term focus has turned to demand for winter fuels, particularly in the U.S. Northeast, the world's largest heating oil market.

Forecasts from the National Weather Service are for mild temperatures in many parts of the country into the middle of January. That could curb demand for winter fuels and has sent oil prices lower.

Energy prices were also calmed by a possible deal between Russia and Belarus, which had previously been clashing over natural gas prices but are now in talks. Belarusian officials had suggested they could hinder the transit of gas across Belarus to Europe if Russian state gas monopoly OAO Gazprom halts supplies meant for Belarusian customers.

Analysts said the market could still find some support from longer-term concerns over the security of supplies and on expectations of robust growth in demand.

"All the elements that brought prices to these levels are still with us."

Source:

http://www.onelocalnews.com/howelltimesandtranscript/ViewArticle.aspx?id=39075&source=2