Heating oil little changed in NY

24/11/2008

Wholesale heating oil prices have remained stable during trading on the New York Mercantile Exchange (Nymex) this morning (November 24th).

The bourse's main contract, heating oil for January delivery, was trading $1.6958 (£1.13) a gallon at 10:40 this morning, after opening at $1.71 a gallon.

So too, Nymex's main oil contract - light, sweet crude for January delivery - has also remained broadly stable, although it dipped to a low of $48.80 a barrel.

Heating oil prices have fallen considerably since the summer, tracking falls in the price of crude oil.

There is current concern that prices could fall further as a result of dwindling demand brought on by the economic downturn.

According to Reuters, both Venezuela and Iran have called on the Organisation of the Petroleum Exporting Countries to constrict supply in an effort to artificially bolster prices.

However, Rob Laughlin, broker at MF Global, said that there was scepticism about whether such a move could make much of a difference on falling oil prices.