NEW YORK: Oil prices ended higher on Tuesday (Dec 20) in a volatile session as a worsening outlook for a major US winter storm sparked fears that millions of Americans might curb travel plans during the holiday season.
Brent crude futures settled up 19 cents, or 0.2%, to US$79.99 (RM354.47) per barrel while US West Texas Intermediate (WTI) crude futures settled up 90 cents at US$76.09 (RM337.19) per barrel.
Oil prices were buoyed by a softer dollar and a US plan to restock petroleum reserves, but gains were capped by uncertainty over the impact of rising Covid-19 cases China.
A weaker dollar has also supported prices, making oil cheaper for those holding other currencies.
The Midwest and Great Lakes region could see a major blizzard beginning on Thursday (Dec 22), while cold air moving east could bring a flash freeze caused a rapid temperature drop across the country, according to the National Weather Service.
Heating oil futures have fallen more than 4% since the start of the week to US$3.03 per gallon on Tuesday.
“The storm could majorly affect travel this holiday season – I’m happy I’m not travelling,“ said John Kilduff, partner at Again Capital LLC here.
Prices also fell on news that TC Energy Corp submitted its plan to restart the Keystone pipeline to US regulators, a source familiar with the matter said, nearly two weeks after the 622,000 barrel-per-day (bpd) pipeline ruptured in the worst oil spill in the United States in nine years.
While China has been relaxing pandemic restrictions, a surge in Covid-19 cases hurt the fuel demand outlook and fed uncertainty about the country’s economic recovery, said CMC Markets analyst Tina Teng.
Washington plans to buy up to 3 million barrels of oil for the Strategic Petroleum Reserve after this year's record release of 180 million barrels. – Reuters