Heating oil tracks crude downwards

19 April 2010

Written by Neil Brunskill

Heating oil prices fell for a third day on the New York Mercantile Exchange this morning (April 19th), mimicking losses seen in crude futures.

Both commodities fell sharply as investor confidence withered during the Asian trading session.

The announcement that the Securities and Exchange Commission is pressing charges against Goldman Sachs for alleged fraud caused nervousness in the markets and created a move into safe assets such as gold and haven currencies.

And with the dollar moving higher against the euro and other currencies, dollar-priced commodities such as crude and heating oil became less attractive to foreign traders.

By the time European markets opened, heating oil was trading at $2.177 (€1.617) a gallon, down nearly four cents, while crude futures were approaching $81 a barrel.

Speaking to Reuters, Clarence Chu, a crude oil trader at Hudson Capital Energy in Singapore, commented: "The market was ripe for profit-taking and the Goldman news was the trigger."

Click here for a home heating oil quote