Oil prices gain as demand in northeast US drops

Oil prices rose in Monday's Asian trading making modest gains amid declining demand for oil in the northeast of the United States which is affected by Hurricane Sandy. In the United States, oil prices for December delivery came up from the lowest level in four months, putting on 31 cents to USD 85.17 per barrel in electronic trading on the New York Mercantile Exchange Contracts fell by about USD 2.23, or 2.2 percent, to close at USD 84.86 per barrel at the end of trading last Friday registering their lowest levels since July 10. The US government recently decided to temporarily allow foreign oil tankers coming from the Gulf of Mexico to enter northeastern ports, in hope of easing the sting of fuel shortage in the areas hardest hit by Sandy. Many of the affected areas of the US are still struggling to return to normal, which means that the demand for fuel remains low for now. Brent crude meanwhile rose by 26 cents to UDS 105.94 per barrel in London, while futures contracts for gasoline rose 0.7 percent to reach UDS 2.581 per gallon (3.8liters). Heating fuel rose 1.6 cents to reach USD 2.963 per gallon, while natural gas lost 3.1 cents to reach USD 3.523 per 1,000 cubic foot.