Oil rose to the highest price in more than two years as cold weather in the U.S. and Europe stoked demand.

U.S crude prices for January rose as high as $90.46 a barrel, the highest since Oct. 2008, Reuters reported.

Temperatures in northwest Europe are expected to stay below seasonal norms for the next 10 days, raising demand for heating oil and prompting utilities to use their oil-fired power plants.

In the U.S., heating demand is expected to be 16.3% above normal in the week to Dec. 11, according to the U.S. National Weather Service.

"The market is reacting to the very cold weather in Europe and it's expecting to see an impact on heating oil," said Roy Jordan, oil analyst at Facts Global Energy. "It's a knee-jerk reaction."

A weakening U.S. dollar further boosted prices. The dollar index declined by 0.3%.

Freezing temperatures may drain U.S. oil inventories. A Reuters poll of analysts forecast that U.S. crude stockpiles declined by 1.5 million barrels.

Industry data on inventories will be released late Tuesday, while the Energy Information Administration is due to publish government statistics Wednesday.


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jbjg24m

gonna be a long cold winter for lots of ppl

December 10 2010 at 7:00 PM Report abuse rate up rate down Reply
realtormerry

And still the goverment does not issue oil drilling permits to fill the pipelines that are slowly running dry!!! I suppose we will owe our soul to the Middle East oil cartels.

December 08 2010 at 7:12 PM Report abuse rate up rate down Reply
rbjllj

We need to get away from foreign oil, there are many other types of power that can be used. There is a way to turn rubbish or what would end up in landfills into oil and use that to heat. Also solar energy, wind energy, etc. There are too many other things that we can use to get away from the oil.

December 08 2010 at 2:53 PM Report abuse rate up rate down Reply
babylamb58

Look for oil prices to eventually reach between $150.00 to $200.00 dollars a barrel sometime in the near future. This will cause gas prices to sky rockey of course. To be fore warned is to be fore armed.

December 08 2010 at 2:20 PM Report abuse rate up rate down Reply
Robert & Arlene

I think is so funny that a lot of people are saying on this blog that we need an alternative to oil and i agree the onle delima is the current administration has put so many restrictions in place that it almost impossible to do so. I also agree that we need an alternative

December 08 2010 at 12:48 PM Report abuse +4 rate up rate down Reply
John

DO YOU MISS BUSH YET !

December 08 2010 at 12:27 PM Report abuse +5 rate up rate down Reply
drbuckles

But you forget that the party of drill is the party of Republicans. The Democratic party still has some liberals left but as the Republicans move further right with the Tea Party the Democratis party is turning into the Republican party. It has been moving in that direction since Reagan started telling you that government is the problem and liberals are the tax and spend party. But the truth is that the Republicans have turned into the borrow and spend party, as anyone can see, if you look at the debt created by Reagan and both Bushs. In between you had Clinton, and yes he had a Republicans Congress, but look what happened with that Republican Congress and Bush, they left with a 19 trillion dollar debt. Moreover you can attribute the melt down to them because they passed the deregulation of the banks by repealing the Glass Steagall Act in 1999, and passing the Commodities Futures trading Act, which led to the speculation and $145 a barrel oil, and the speculation in the banks to sell mortgage backed securities to everyone in the world, leading to our economic melt down. And it is true that a corporate Democrat was in office this would have never happened with a liberal Democratic party in power because it was their party that created the Glass Steagall Act to prevent banks speculating, as they did in the lead up to the depression.By the way the Republicans as a party were, and are, against the regulation of banks and speculation in Commodities market.

December 08 2010 at 12:17 PM Report abuse -3 rate up rate down Reply
headingsouth

Well, lets see. Oil prices skyrocketed while oil men Bush and Chaney along with the Republicans controled congress and the senate. We had a Democratic controled congress, senate and President for 2 years and oil prices remained stable. Now the Republicans are taking control again and oil and gas are doing the BUSH CHANEY dance again. Makes sense to me.

December 08 2010 at 12:12 PM Report abuse -2 rate up rate down Reply
1 reply to headingsouth's comment
Robert & Arlene

you forget that bush hasd a dem congress and what happened prices went up that just screwed your theory.

December 08 2010 at 12:56 PM Report abuse +2 rate up rate down Reply
cliffy934

The auto makers have improved the gas mileage on most new cars, and also we now have the hybrids, so our consumption should have gone down, in other words, we should not be using as much gas. I believe the only way gas prices can be stabilized is for the consumer, and anything that runs on gas be parked for 12 hours, I mean anything that runs on gas, from a lawn mower to an airplane or cruise ship. Park it for 12 hours, and this will let the greedy oil companies know, the consumer has just set the price of gas.

December 08 2010 at 12:02 PM Report abuse +1 rate up rate down Reply
bbcr50

what a joke "cold weather drives up prices" !! The wind blowing the wrong way drives up prices as does a bird farted or the "Getty's" need another summer mansion ! If you're gonna blow smoke up our a**es...warm your lips first please !! give me a break !!

December 08 2010 at 12:00 PM Report abuse rate up rate down Reply