Heating oil slips on euro weakness

22 March 2010

Written by John King

Heating oil prices slipped on the New York Mercantile Exchange this morning (March 22nd), weighed down by continued weakness in the euro.

Although the dollar lost ground against a number of major competitors, it continued to make ground on the euro as hopes for an EU bailout for Greece grew dimmer.

The dollar took a hit after the US Congress voted in favour of Obama's healthcare reform bill, with many traders anxious about the costs of implementing the new system.

It is estimated that the bill will cost around $940 billion (€694 billion) over ten years, extending healthcare cover to around 32 million Americans currently living without insurance.

Although anxiety about the project hurt the dollar, Greece's debt concerns put more immediate pressure on the euro, sending it to a three-week low against its transatlantic counterpart.

By the time European markets opened, heating oil contracts had slipped to $2.065 a gallon, down 1.2 cents.

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