Light oil prices trading around $71 on Friday

Light oil prices are currently trading around the $71 a barrel mark on Friday in Asia as a warm winter and struggling economy in the US undermine demand for crude products like diesel and heating oil.

Benchmark light crude oil futures for January delivery was up 33 cents to $70.87 at midday Singapore time in electronic trading on the NYMEX. On Thursday, the contract fell as low as $69.81 before settling down 13 cents at $70.54.

Light oil prices have fallen about 13 percent since October on investor concern US crude oil demand isn’t picking up amid the broader economic recovery. Consumption of crude distillates, which include heating oil and diesel, has fallen about 20 percent from a year earlier, Barclays Capital said in a report.

“It is really the lack of inspiration in distillate demand that stands out, showcasing the lack of cold weather and no turnaround yet in trucking activity in the US,” Barclays said. “Until that transpires, crude oil prices will remain capped on the upside.”

Tags:  Asia, light oil prices, NYMEX, trading, US