Heating oil up on Greece deal, Chinese data supports

12 April 2010

Written by Kim Bardsley

Heating oil prices rose in commodities trading this morning (April 12th) on the back of a Greek finance deal and strong demand data from China.

The main impetus behind the rise was the announcement that European finance ministers have finalised the details of a €45 billion (£29.1 billion) aid package for Greece, working with the International Monetary Fund.

This pushed the euro higher against the dollar, making crude and heating oil, which are priced in dollars, more attractive to foreign buyers.

While heating oil approached the $2.25-a-gallon mark, crude prices were above $85 a barrel once more after dropping at the tail-end of last week.

Meanwhile, import figures from China also showed a continuing increase in demand for crude in March, providing further support for the commodity.

Speaking to Reuters, David Moore, an analyst at the Commonwealth Bank of Australia, said: "The weaker US dollar and positive Chinese trade data are the two main supporting factors."

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