Heating oil falls after revised prediction

13 February 2008

The cost of heating oil futures fell on Tuesday after the US Energy Information Administration (EIA) revised its prediction for crude oil prices.

Last month the EIA's Short-Term Energy Outlook forecasted that US crude would average $87 (€59.83) a barrel during 2008, compared with $72 during 2007.

However, an updated report by the body suggested the average cost of US crude this year will be about $86 a barrel, falling to $82 in 2009.

Following the news traders looked to take profits from the steep rise in oil prices during the past few days.

As a result, heating oil futures lost 1.33 cents to close at $2.5911 a gallon and US crude for March delivery slipped 81 cents to settle at $92.78 a barrel.

Meanwhile, the latest inflation figures published by the Central Statistics Office show the cost of heating oil has increased by 32.3 per cent during the past 12 months. The figure includes a 4.5 per cent rise in January.

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