Heating oil markets fall in volatile trading

18 May 2011

Posted by John King

World wholesale prices for heating oil remained turbulent this week, with the markets falling for the second consecutive day yesterday (May 18th) following gains later last week.

On Tuesday, the cost of the commodity for June delivery dropped to $2.84 (£1.74) per gallon - a fall of one per cent, Bloomberg reports.

However, prices remain 43 per cent higher than they were at this time last year, reflecting higher costs for oil products across the board.

Bloomberg noted that the falls came off the back of dampening optimism about the market for fuel over the coming months and a downturn in economic confidence.

In also noted a drop in demand for oil due to weakening industrial activity in the US, which led to crude falling by 26 cents.

Earlier this week, prices for the commodity had dropped in response to exchange rate fluctuations that followed the arrest of the head of the International Monetary Fund Dominique Strauss-Kahn in New York.

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