Heating oil steady in New York

19 October 2009

Demand for wholesale heating oil contracts trading on the New York Mercantile Exchange (Nymex) was firm this morning (October 19th), helping to push the commodity above $2.03 (€1.36) a gallon.

Wholesale heating oil contracts trades in units of 42,000 gallons and are delivered to port in New York for delivery throughout the US.

Over time, upward movements in wholesale heating oil prices commonly translates to higher prices for consumers, although other factors can also affect prices.

Heating oil prices typically rise in the colder months as demand increases among domestic users.

For this reason, many consumers both in the US and the UK choose to lock themselves into a deal with their heating oil supplier before the seasonal demand picks up.

The effect of rising heating oil prices was particularly evident in the latter half of 2008, when wholesale prices on the Nymex climbed above $4 a gallon.

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