Heating oil down on Greece, demand forecasts support

23 April 2010

Written by John King

Heating oil prices moved lower during the electronic trading session of the New York Mercantile Exchange this morning (April 23rd) as concerns about Greece's deficit crisis grew.

However, losses were limited by expectations of rising demand for crude and other fuels as we approach the summer season.

Speaking to Reuters, Peter McGuire, Peter McGuire, managing director of Commodity Warrants Australia in Sydney, said oil will hit $90 a barrel by June, up from current prices of around $83 a barrel.

In this morning's trading, heating oil was selling for $2.207 a barrel by 02:33 CST, down 0.8 cents on yesterday.

"We are going to see more demand coming in spring and summer and that is going to push prices higher," said Mr McGuire, adding that the only thing that will bring prices down will be a surge in the dollar.

The stronger dollar has been the main factor weighing on prices this morning, as concerns about Greece's debts sent the euro to an 11-month low.

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