Heating oil drops in New York

19/01/2009

The price of heating oil has fallen on the New York Mercantile Exchange this morning (January 19th), following crude downwards.

During early trading, heating oil for February delivery fell to a low of $1.4370 (97.91p) a gallon, down more than three cents.

Meanwhile, crude oil prices also fell further, which have in part been attributed to the ceasefire in Gaza and the resolution of the gas dispute between Russia and Ukraine.

"Markets are likely discounting the final passage of the twin crises that have been hovering over us for much of the month," said Edward Meir of MF Global, speaking to Reuters.

Earlier this month, oil prices rose as concern grew about supply arising as a result of these events, with Iran stoking fears by calling for an embargo on oil imports to Israel until a ceasefire was brokered.

However, prices retreated again over the course of last week as poor demand data emerged in the US.

The Energy Information Administration showed that demand for crude and derivatives such as heating oil was continuing to fall.