Crude oil prices fell sharply on Monday, the first day of trading in 2005, as higher-than-normal temperatures in the eastern US lower demand for heating fuel.

On the New York Mercantile Exchange, crude oil for February delivery fell 1.33 dollars to settle at 42.12 dollars a barrel. London's International Petroleum Exchange was closed today for holiday.

The National Weather Service said temperatures in the northeastern region of US would be above normal from January 8 to January 12. Heating-oil demand in the Northeast would be 26 percent below normal during the same period. The Northeast consumed about 80 percent of the nation's home heating-oil.

However, in the Bloomberg's weekly survey, traders and analystswere mixed in their opinions about the oil prices. Eighteen respondents said oil prices would drop, while seventeen expected oil futures to rise and seven forecasted little change.

Crude oil prices rose 34 percent in 2004.

Source: Xinhua