Oil prices down in morning trade

17 December 2009

Written by John King

Oil prices moved lower in the Asian trading session this morning after strong gains yesterday.

Crude oil prices were down in the Asian trading session this morning (December 17th) but held above $72 (£44) a barrel.

The commodity made strong gains on the New York Mercantile Exchange yesterday, supported by a report from the Energy Information Administration showing a large drawdown in crude oil inventories and other products such as heating oil.

Prices for both crude and heating oil have fallen in recent weeks after consecutive demand reports showing a build in inventories, despite the onset of colder weather which usually sparks a flurry of fuel sales in the US.

Speaking to Bloomberg, Clarence Chu, a trader at Hudson Capital Energy, addded: "The crude draw is more than people expected. If you look at refinery runs, they're down more than one percent. That shows refiners are not turning crude into products."

Despite yesterday's gains, both crude and heating oil were down this morning as the dollar strengthened against the euro.

Click here for a home heating oil quote