Oil fell below $82 a barrel in Asian trade today on forecasts that the relentless frigid weather in the United States will moderate and ease demand for heating fuel, analysts said.
New York's main futures contract, light sweet crude for February delivery, was trading at $81.75 a barrel in the morning, down 77 cents from the New York close yesterday.
The New York contract hit an intra-day peak of $83.95 a barrel yesterday, its highest level since October 9, 2008, before slipping into the red as investors locked in profits for the rest of the day.
Brent North Sea crude for February was down 58 cents at $80.39.
Weaker oil prices "are the result of weather forecast in the United States that the temperatures would be moderating this week," said Victor Shum, senior principal at Purvin and Gertz energy consultancy in Singapore.
"It looks like in the US the cold snap is coming to an end."
Oil prices however are likely to remain high, gaining support from robust supplies and expected stronger fourth quarter 2009 company profits in the United States, Shum said.
"Oil pricing remains very strong given the supply demand balance," he said.
"It's going to take two very severe winters to consume all the distillate fuels that has been stored both onshore and in floating storage facilities."
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