Crude oil up in New York

28/11/2008

Crude oil has risen during early trading this morning (November 28th).

In electronic trading on the New York Mercantile Exchange (Nymex), crude for January delivery rose as much as 0.8 per cent to $51.18 (£33.23) a barrel, after falling more than $3 yesterday.

The gains come ahead of a meeting of members of the Organisation of the Petroleum Exporting Countries during which it is believed that further supply cuts will be enacted.

However, a poll by Bloomberg poll has predicted that despite such a move, prices may fall further as the economic crisis deepens.

Such a scenario could also impact on petroleum derivatives such as heating oil, DERV and marine fuels.

During trading on the Nymex today, wholesale heating oil has fallen as much as 46 cents from its opening price.

At 10:27 GMT, heating oil was selling at $1.722 a gallon.

In August, heating oil prices rose above $4 a gallon, tracking the escalating costs of crude.