Light oil prices trading higher close to $80 a barrel

US Light oil prices spiked higher, trading above $79 a barrel on Monday as an extended cold snap triggered an end of 2009 rally in energy futures. Benchmark US Light crude oil futures for February delivery added 72 cents to settle at $78.77 a barrel in light, holiday trading on the NYMEX.

Futures contracts for oil, natural gas, and heating oil have all become more expensive this month as snowstorms blanketed parts of the country and a sharp drop in supplies of crude oil and other fuels surprised traders.

According to the latest data from the Energy Information Administration, natural gas prices jumped in early December to the highest since January, and heating oil prices climbed during the middle of this month.

Still, the winter chill hasn’t boosted energy demand from a year ago. The United States is consuming less petroleum than it did at the same time last year, when oil and gas prices were cheaper and the economy was in recession.

Tags:  2009, light oil prices, trading