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05 Feb 2007 Prices drop as geopolitical tensions subside

Oil prices have dropped 23 cents to under the $59 (£30.05) per barrel mark, with London Brent crude settling at $58.18 and US crude falling by the same amount to $58.79.

chkmark Last week, prices rose by as much as 6.5 per cent amid cold weather in the US and tension in Nigeria after a strike was proposed by the oil unions.

chkmark The strike, however, did not go ahead and the unions are due to meet with president Olusegun Obasanjo today to discuss a lack of security in the Niger Delta which has forced one-fifth of the nation's oil output to be shut down, Reuters reports.

chkmark Meanwhile in Iran, a nuclear official was quoted by IRNA news agency as saying the country would not suspend its uranium enrichment work.

Gholamreza Aghazad is believed to have earlier suggested that Iran would install 3,000 more atomic centrifuges at its Natanz site.

Mike Wittner, of investment bank Calyon, told BusinessDay.co.za: "The risk-premium is re-emerging into the mix. Just following the news flow, there's been a lot more coming out of Iran and Nigeria is simmering away."

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Lower the settings on thermostats-consider using programmable thermostats that automatically vary heat settings throughout a 24-hour period

Use ceiling fans can keep the air circulating and spread the heat in each room. Structural considerations:

  • Check the heating ductwork. Insure sections are tightly fitted, free of holes and sealed with tape. Aluminum tape is a little more expensive, but holds up better under moisture from condensation.
  • Winterizing ductwork by wrapping it in insulation is another option. Cold floors result in air inside the home cooling off and requiring re-heating. While some ventilation is required to reduce moisture, check the crawl space for excessive drafts. Seal these with plastic, plywood or Styrofoam.
  • A vapor barrier may reduce excessive dampness as a means of further winterizing the crawl space.
  • An annual inspection of exterior caulking around all window and door casings is recommended.
  • Check window glazing in older windows as another source of heat loss. Consider winterizing water lines with foam sleeves. It prevents freezing and keeps water as warm as possible.
  • Check for drafts around external openings in the house: windows, doors and chimneys. This can be done with a cigarette or incense. Follow the smoke to the source of the draft. Your local home supply store will carry winterization tape, insulating foam, or caulk that will seal these leaks; keeping heat in and cold out.
  • Older single-pane windows often allow heat loss through the framing of the window itself. Covering these windows with clear plastic will help remedy this winterization deficiency. Note: Care must be taken not to exclude the entrance of all fresh air.
  • Insure you have 6-8 inches of insulation in your attic or loft area. Heat is lost through the roof if improperly insulated. Materials for this are available at your local home improvement store.

This is not a total list of all that can be done, but it should get you started on your individual winterization program. Look around your home and think it through. Each situation is unique and will offer you opportunities to save money if you winterize properly. STAY WARM!

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