Tuesday, January 20, 2009

Oil, Natural Gas Prices Slide

With US equity markets closed in observation of Martin Luther King Jr. Day, there was little to report except on select commodity markets.

In futures trading, oil for February delivery fell $2.84, to $33.67. The February contract closes on Tuesday, Jan. 20, and trading was thin as compared to the March contract.

Also feeling the impact of decreasing demand was natural gas, which is used to heat nearly 1/3 of all US households. The March contract fell 26 cents, to a seasonal low of $4.56.

Both prices reflect supply surpluses in US stocks and slack demand as the economy reels from deflationary pressures, job losses and the nation's worst recession since the 1930s.

Our regular report will be posted shortly after market close, later today, as Americans and the world will be focused on the historic inauguration of President Barack Obama.

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