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US Crude Slides Below $27, Natural Gas Rises on Weather Forecasts

January 20, 2016 at 20:51 by Vladimir Vyun

Prices for US crude oil sank below the $27 for the first time since 2003. Brent crude fared a bit better but still demonstrated significant losses. Traders expect the oversupply on the market to worsen as Iran is going to battle for its share of the market after Western nations lifted sanctions on the country. February contract for WTI crude oil plunged 6.71 percent to $26.55 per barrel as of 20:43 GMT on NYMEX today. March Brent oil slid 2.43 percent to $28.06 per barrel on ICE.

Meanwhile, prices for natural gas rose as forecasters predicted a major snowstorm in the eastern regions of the United States. AccuWeather forecasted:

A major snowstorm will hit areas Large Bounce House from Philadelphia to Boston with heavy snow and wind and could immobilize areas from near Washington, D.C., to the southern Appalachians with blizzard conditions by the weekend.

Traders wait for a supply report from the Energy Information Administration, and analysts say that it is going to show a drawdown of 180 billion cubic feet from US stockpiles of gas. Futures for delivery of natural gas in February advanced 1.37 percent to $2.12 per million British thermal units on NYMEX today.

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