Heating oil retreats despite stronger demand

5 November 2009

Wholesale heating oil prices were down during the Asian trading session this morning (November 5th), retreating on gains witnessed yesterday after new data suggested stronger demand for petroleum products in the US.

The Energy Information Administration's inventories report for last week showed a drop in stocks of crude, gasoline, propane and distillates including heating oil.

Following the publication of the figures, heating oil contracts trading on the New York Mercantile Exchange climbed above $2.09 (€1.41), up 1.69 cents on its opening price.

However, in electronic trading this morning the contract had fallen by 1.64 cents by 02:34 Central Time, with a stronger dollar decreasing the appeal of commodities for foreign investors.

Meanwhile, upcoming employment figures from the US Labor Department also loomed ominously, with a Bloomberg News survey suggesting that the unemployment rate hit 9.9 per cent in October, up 0.1 percentage points from the previous month.

This amounts to an additional 175,000 job cuts over the course of the month.

Click here for a home heating oil quote.