Heating oil steady after two-day slump

18 August 2009

Heating oil prices held steady this morning, recovering partially from two days of losses.

Wholesale heating oil prices moved upwards this morning (August 18th), stabilising after two days of losses.

By 04:27 Eastern Time, the September-delivery heating oil contract on the New York Mercantile Exchange was trading at $1.8303 (£1.11), nearly four-tenths of a cent on its price at the close of trading yesterday.

The marginal upward movements come as global stock markets recovered after a sharp slump witnessed at the end of last week and sustained yesterday.

With equities falling in China, Japan, the UK and the US yesterday, crude oil prices also moved downwards alongside heating oil, extending losses from Friday.

However, crude also strengthened moderately this morning and was trading at nearly $71 a barrel in London this morning.

Speaking to Bloomberg, Hannes Loacker, an analyst at Raiffeisen Zentralbank Oesterreich, commented: "Stocks are slightly up in Europe and the US and the dollar has weakened. We're seeing a reversal from the past two days."

Customers who are looking to save money on fuel may wish to stock up on heating oil before winter demand picks up.