Commodities: Oil Prices Drop on Warmer Weather

Warmer Weather Drives Oil Prices Down

Cold weather has been driving the price of oil, and that seems to have come to an end for now, at least until another possible cold trend comes through in February.

If you can trust those forecasting the weather, the next month should be a much warmer one, and that should have a major impact on the price of oil during that time, as it should drop after running up for some time as the cold weather continued to linger.

With China's central bank increasing its reserve ratios, it's hard to tell if that's a statement that they're going to cut back on commodity imports at this time, as in 2009 they grew by about 56 percent for the year.

With that combination, we again, would see significant downward pressure on light sweet crude over the next month. Other energy sectors and gas should also have a similar price movement.

Warmer Weather Drives Oil Prices Down