Heating oil breaks $2.10 once more

17 September 2010

Written by Neil Brunskill

After sharp mid-week losses, heating oil futures were trading higher once more during electronic trading on the New York Mercantile Exchange this morning (September 17th), supported by a stronger dollar and rallying stocks.

By the time European markets opened, front-month heating oil futures were trading back above $2.10 a gallon once more, having settled marginally below the symbolic barrier yesterday.

The rally came as the dollar weakened, making crude, heating oil and other-dollar priced commodities more attractive to foreign buyers, while rising equities in Asia also heightened appetites for risk.

Crude also saw gains this morning, breaking through the $75-a-barrel barrier, but both commodities were on course to finish lower for the week, unable to rebuild losses seen in midweek trading.

The commodities came under pressure after Enbridge announced that its Canada-US pipeline disruption would be resolved by today, putting paid to fears of a widespread supply squeeze across the US.

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