Pumps

Crude prices have fallen again due to ongoing concerns about the global oversupply, with a snowstorm increasing demand for heating oil in the US.

Brent lost 67 cents to $31.51 a barrel, while the US crude edged down 58 cents to $31.61 a barrel, Reuters reported.

Iraq oil ministry spokesman Asim Jihad told the news agency that in December 2015, the country produced more oil, on increased output from its central, as well as southern fields.

Saudi Aramco chairman Khalid al-Falih said that the company is keeping up its new investment in energy projects, despite cost-cutting due to weak oil prices.

"Demand for heating oil went up due to a snowstorm that hit the US east coast over the weekend."

Bloomberg reported Khalid al-Falih saying that Saudi Aramco has formulated a new strategy in response to cheaper oil.

However, demand for heating oil went up due to a snowstorm that hit the US east coast over the weekend, helping increase crude prices on Monday.

Storm Jonas killed at least 19 people in the US, with 11 states declaring a state of emergency.

The latest Platts survey of OPEC and oil industry officials and analysts has revealed that oil production from the OPEC declined by 130,000 barrels per day (bpd) in December 2015 on lower volumes from Nigeria and Saudi Arabia.

The survey highlights a fall in December output to 32.28 million bpd from 32.41 million bpd in November 2015.


Image: The US crude edged down 58 cents to $31.61 a barrel. Photo: courtesy of Rawich/ FreeDigitalPhotos.net.