Heating oil stronger, economic prospects support

13 September 2010

Written by John King

Heating oil prices were holding on to gains made in electronic trading on the New York Mercantile Exchange this morning (September 13th).

Ahead of the opening of US markets, the headline heating oil contract was continuing to hold above $2.10 a gallon, up 33 cents at 07:20 Central Standard Time.

Crude futures were also clinging to early gains, although both commodities retreated from the price spike seen this morning after stronger industrial growth figures from China promoted a bullish sentiment in Asia.

By 07:20 Central Standard Time, crude had dipped below $77 a barrel, but was still up more than half a cent.

Speaking to Bloomberg, Thorbjoern Bak Jensen, a Global Risk Management analyst based in Denmark, said there is further room for the commodities to rise this week.

"News that Chinese production is growing more than expected is very supportive. US data this week may further write off the prospect of a double-dip," he said.

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