Heating oil down for second day

19 November 2009

Heating oil prices moved lower for the second consecutive day this morning, impacted by unseasonable weather in the US.

Heating oil contracts trading on the New York Mercantile Exchange moved lower for the second day in a row during the Asian trading session this morning (November 19th).

While a strengthened dollar pulled commodities trading on the exchange lower today, the dip has been more broadly attributed to the unseasonably warm weather seen in the north-eastern United States.

Speaking to Reuters, Peter McGuire, managing director of CWA Global Markets, said prices are likely to remain subdued until the warm weather passes, as concerns about demand for the heating fuel will persist during trading.

The impact of the warm front will not be witnessed until next week, when the Energy Information Administration will publish its inventories report, which covers heating oil, gasoline, propane and crude oil.

Figures for last week showed a moderate drawdown in heating oil inventories, although stocks are still 40.3 million barrels higher than they were during the same period in 2008.

Click here for a home heating oil quote