Crude and heating oil flat in mid-week trade

24 February 2010

Written by Bob Burton

Crude prices were holding around $79 (£51.10) a barrel during trading this morning (February 23rd), flat after losses seen yesterday.

Heating oil prices were also steady on the New York Mercantile Exchange, with investors awaiting a weekly demand report from the Energy Information Administration (EIA) to guide trading direction.

Speaking to Bloomberg, Clarence Chu, a trader with options dealers Hudson Capital Energy in Singapore, said that while traders are expecting demand to weaken further, a recent report from the American Petroleum Institute has suggested a drawdown on oil stocks.

"This is making people nervous but they're waiting to see the EIA numbers to confirm. The dollar will continue to be significant in terms of moving the market," he explained.

He added that the EIA figures tend to be seen as a more reliable indicator of real demand conditions in the US.

The organisation measures weekly movements in crude, heating oil, gasoline and propane stocks across the country, providing a comprehensive portrait of demand conditions.

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