Crude oil for February delivery traded as low as $41.25 a barrel on the New York Mercantile Exchange, its lowest level in three weeks. It closed at $42.12, down $1.33 for the session.
But heating fuels led the declines among energy futures, with February heating oil down 6.04 cents, or 4.8 percent, to close at $1.1922 a gallon. It fell as far as $1.168, its lowest level since early September.
February natural gas closed at $5.79 per million British thermal units, down 35.9 cents, or 5.8 percent. The contract hasn't closed at a level that low since late February, though futures prices for other contracts fell under the $6 mark in late April.
February unleaded gasoline posted only a modest decline, however; it was down 0.12 cent to end the day at $1.1317 a gallon.
Heating oil will "continue to decline in price as the weather stays almost balmy in the Northeast region," said Kevin Kerr, president of Kerr Trading International.
Fimat USA analyst Michael Fitzpatrick, in a note to clients, said, "Unless there is a specific supply threat or much colder weather, it might be difficult for prices to resist further selling pressure."
Prices will likely remain in the $40 to $45 range for the next 30 to 45 days, in advance of Iraq's elections and the next meeting of the Organization of Petroleum Exporting Countries, on Jan. 30, said Person.
