Heating oil resilient despite Greece pressure

15 June 2010

Written by Bob Burton

Heating oil prices were fractionally higher as European markets opened this morning (June 15th), recovering from early losses to trade around $2.03 (€1.66) a gallon on the New York Mercantile Exchange.

The commodity fell alongside crude futures in the Asian trading session after ratings agency Moody's announced that it has downgraded Greece's sovereign debt rating to junk status.

Following the announcement, crude was below $75 a barrel, although it has since back above the benchmark price.

A poll conducted by Bloomberg showed that despite concerns about the eurozone economy, analysts expect demand to have continued to strengthen in the US last week.

Ahead of the latest inventory report from the Energy Information Administration tomorrow, the median of eight analyst estimates suggested crude stockpiles fell 1.75 million barrels last week.

The commodity has enjoyed a recovery in demand in recent weeks, with the warmer weather increasing demand for driving fuels, while industrial demand has also supported prices.