Heating oil down after Monday's surge

3 November 2009

Wholesale heating oil prices fell during electronic trading on the New York Mercantile Exchange on Tuesday (November 3rd) after the commodity climbed more than two per cent yesterday.

In Asian trading ahead of the market's physical opening later today, the near-term heating oil contract for December delivery fell but remained above the $2 (€1.35) mark breached yesterday.

During Monday's trading support for heating oil came from wider upward movements in crude oil prices, which rallied on the prospects for recovery in fuel demand and strong performances from petroleum-linked currencies such as the Australian and Canadian dollars on international foreign exchange markets.

The Canadian dollar, known as the loonie, has climbed dramatically against its US counterpart in recent months and analysts are now predicting that the two dollars may hit parity.

As Canada's largest single export, oil will have a large part to play if this is to occur in the near future.

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