Heating oil prices flat ahead of inventories data

11 November 2009

Wholesale heating oil prices were broadly stable during early trading this morning (November 11th), with analysts awaiting the latest inventories data to gauge demand for the fuel in the US.

Later today the US Energy Information Administration will publish inventories data for last week which will include crude, propane and gasoline, as well as distillates such as heating oil.

The data is generally considered to be more comprehensive than petrol and crude stock figures produced by the American Petroleum Institute (API).

The API's latest figures, published yesterday, showed an unexpectedly large rise in petrol stockpiles. The data weighed down on wholesale crude, gasoline and heating oil prices yesterday as many were expectant that the colder weather would bring an uptick in demand.

Heating oil prices are also subject to considerable seasonal variations, with prices typically reaching an annual peak during the coldest months of the year.

To avoid this price jump, many customers negotiate bulk heating oil deliveries during the warmer months.

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