Heating oil supplies 'rising'

19 August 2010

Written by John King

Distillate fuels, which include heating oil, have risen by 1.1 million barrels, a new report has revealed.

The US Energy Department's Energy Information Administration noted in its weekly overview that heating oil stock increased by as much as expected, while gasoline and crude supplies experienced a lower drop than predicted.

According to the figures, crude fell by 800,000 barrels over the last seven days, significantly lower than the 2.5 million barrels analysts at energy specialist branch Platts had estimated.

Experts have reportedly warned that this apparent high level of supply is exacerbated by low demand and makes it difficult to justify current prices.

Financial institution Commerzbank agreed and were quoted by the Associated Press as stating: "Continued investor interest is the only factor working against a sharper fall in prices at present."

Analyst for the organisation Carsten Fritsch recently told Agence France-Presse that oil prices have been strengthened by a weaker dollar and "friendly" equity markets in Asia.

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