Heating oil down despite rally

27/11/2008

Heating oil prices have fallen during early trading today (November 27th) despite a strong performance on US stock markets.

On the New York Mercantile Exchange (Nymex), heating oil for January delivery was trading at $1.73 (£1.11) a gallon at 10:00 GMT, down from an opening price of $1.756 a gallon.

Earlier in the morning, heating oil had risen as high as $1.7560 a gallon.

The following falls came despite strong trading on Wall Street seen yesterday, which has been widely attributed as a strong factor in the gains seen in crude oil prices.

Nymex's main contract - light, sweet crude for January delivery - closed at $54.44 a barrel at the close of trading yesterday, up more than seven per cent on the previous day.

Analysts have also noted that the announcement that China would slash interest rates by 1.08 per cent also helped to encourage trading in New York and other markets.