Heating oil nears $2.10

22 February 2010

Written by Bob Burton

Heating oil prices were edging closer to $2.10 (€1.85) a gallon on the New York Mercantile Exchange this morning (February 22nd), bolstered by demand concerns, a falling dollar, and EU stabilisation.

The rally was also witnessed in crude futures, which touched a six-week high above $80 a barrel, before dipping slightly as European markets opened.

Speaking to Bloomberg, Toby Hassall, analyst with CWA Global Markets Pty in Sydney, said: "That growth story suggests that oil prices will continue to firm as the global economy recovers. But that firming dollar, if it does continue, that will keep prices fairly well in check."

The dollar fell sharply against the euro towards the close of trading last week, but has trimmed losses this morning, with many analysts predicting that the slump goes against the grain of a longer-term appreciation trend.

Although the Greek debt crisis has highlighted instability in the Eurozone region, the US last week enjoyed a raft of bullish economic data and corporate earnings report which provided support for the global reserve currency.

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