Heating oil continues to rise

29 December 2009

Written by John King

Heating oil prices registered further gains during electronic trading on the Nymex this morning.

Wholesale heating oil prices continued to rise during electronic trading on the New York Mercantile Exchange (Nymex) this morning (December 29th), extending gains made yesterday and in the run-up to Christmas.

The gains came as a persistent cold front continued to ramp up demand for heating oil and other fuels in the US.

The UK and Ireland have also witnessed sustained cold weather over the Christmas period which may be driving up demand for heating fuels among residential and commercial users.

In the US, the Energy Information Administration and the American Petroleum Institute have shown consistent draw-downs in domestic crude, heating oil, propane and gasoline stocks during December, with many analysts confident that the trend will continue through to the new year.

Speaking to Bloomberg this morning as heating oil prices continued to climb, Mark Konyn, chief executive officer at RCM Asia Pacific, said commodities will also be supported by signs of strengthened global industrial production.

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