Heating oil prices flat amid weak demand

15 December 2009

Written by Bob Burton

Heating oil prices held steady during the electronic trading session on the New York Mercantile Exchange this morning (December 15th).

Ahead of the opening of European markets, Asian traders held steady on the headline heating oil futures contract, with many investors awaiting demand data from the American Petroleum Institute later today.

Tomorrow, the Energy Information Administration will also publish its weekly inventories reports, assessing sales of crude, gasoline, propane and distillates such as heating oil.

Although the winter heating season is now in full swing, demand for heating oil has remained unusually weak in the US, which in turn has dragged oil prices down in recent weeks.

However, Victor Shum, a senior principal at consultants Purvin & Gertz, told Bloomberg TV that investors have spotted a buying opportunity as prices have fallen.

"In the new year investors are going to start to reload, and therefore we can expect that right now is a good buy opportunity," he told the news provider.

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