Crude oil prices touch one-year high

20 October 2009

Wholesale prices for crude oil climbed to the highest level in a year yesterday (October 19th), with strong earnings reports prompting a wider rally in stocks and shares.

The Dow Jones Industrial Average also climbed back above the 10,000 mark yesterday after stronger than anticipated third-quarter earnings reports.

Data produced by Thomsons Reuters Proprietary Research showed that 79 per cent of the companies listed on the US Standard & Poor 500 which have reported earnings managed to beat analyst expectations.

Speaking to the news agency about the impact this had on crude trading, Richard Gorry, an analyst at JBC Energy in Vienna, stated: "The gains were overwhelmingly driven by financials and market optimism rather than fundamentals."

Wholesale heating oil prices also rose on the New York Mercantile Exchange yesterday. If the rally is sustained, it is possible that it will have an effect on domestic heating oil prices, as suppliers factor in higher buying costs.

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