Heating oil climbs with crude

2 November 2009

Wholesale heating oil prices moved up during the Asian trading session, mimicking late gains seen in crude prices.

As the markets opened, crude contracts trading electronically on the New York Mercantile Exchange slumped, reaching a low point below $77 (£47) a barrel, while wholesale heating oil prices also dropped below the $2 a gallon mark.

However, both commodities achieved recovery as the day moved forward, with the December-delivery heating oil contract trading at $2.061 by 02:39 Central Time, up 1.09 cents on the gallon.

Commenting on the morning's trading activity, Michelle Kwek, an analyst at Informa Global Markets in Singapore, told Reuters that Chinese manufacturing data had helped to boost confidence.

"But there's still a lot of nervousness in the market because of expectations that there will probably be little or no growth in the US in the fourth quarter," she added.

Domestic heating oil customers looking to protect themselves against seasonal price rises may wish to talk to their supplier about bulk-buying opportunities.

Click here for a home heating oil quote.