Crude Price To Rise

Crude oil prices may rise as colder weather in the US Northeast drains heating-oil stockpiles and attacks by insurgents in Iraq increase concern about supply cuts before the January 30 elections, according to a Bloomberg survey.

Twenty-seven of 61 respondents, or 44 per cent, said oil will rise this week. Twenty-three said prices will fall and 11 forecast they will be unchanged. Two weeks ago, 49 per cent of survey respondents said prices would rise. Eleven of the last 16 surveys correctly predicted the market's direction.

Homeowners in the eastern United States increased burning of heating oil this week as the coldest weather so far this winter moved in. US refineries shut units to begin maintenance over the month, cutting processing 3.3 percentage points to 91.5 per cent of capacity in the week ended January 14, according to the Energy Department.

Crude oil for March delivery was unchanged last week at $48.53 a barrel on the New York Mercantile Exchange.