Heating oil follows upward trend

24 July 2009

The cost of heating oil has continued to follow an upward curve in the latest trading sessions on key exchanges.

On the New York Mercantile Exchange (Nymex), heating oil futures rose to $1.7818 (£1.0838) per gallon, by 04:23 Eastern Time this morning.

Futures prices for other derivatives also rose, with the RBOB gasoline price up to $1.9196.

A number of factors have helped to support prices toward the end of the week's trading, with expectation of lower exports of crude from OPEC countries being one factor.

Jim Ritterbusch, president of Ritterbusch and Associates, told Reuters that the financial markets are now once again the key player in oil price movements.

Besides this, a drop in refinery output has helped to boost prices for derivatives such as heating oil.

It remains to be seen whether OPEC will in fact cut oil output. The organisations' next ordinary meeting is scheduled to be held on September 9th.

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