Heating oil climbs on demand, stocks, flights

21 April 2010

Written by John King

Heating oil traded higher this morning after a number of factors boosted demand for the currency.

Heating oil futures trading on the New York Mercantile Exchange moved higher this morning (April 21st) as investors reacted to a raft of favourable developments that will support demand for oil commodities.

In late trading yesterday, heating oil enjoyed a rally after the publication of a demand report from the American Petroleum Institute which showed an unexpected decline in heating oil stocks, demonstrating increased demand for the fuel.

Meanwhile, positive earnings reports from a number of US and European corporate firms also helped to lighten the mood on trading floors and support the case for global economic recovery.

Crude also prices were also rising this morning as European airports reopened after a six-day grounding of flights due to a volcanic ash cloud which spread over much of the continent.

Oil prices slumped last week as the ban on flights was enacted, with orders for jet fuel plummeting dramatically during the crisis.

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