Heating oil extends gains

22/01/2009

Heating oil prices have risen in trading on the New York Mercantile Exchange (Nymex) this morning (January 22nd), extending the marginal gains made yesterday.

By 10:42, heating oil for February delivery had risen to $1.4077 (£1.0167) a gallon, up 2.17 cents on its opening price.

Meanwhile, the Nymex's main crude contract also extended gains made yesterday, rising more than a dollar to $44.60.

Yesterday, oil prices rose nearly seven per cent as evidence emerged that the Organisation of the Petroleum Exporting Countries' decision to cut production was beginning to have an effect.

"Frankly, we don't know that inventories at Cushing, Oklahoma, are going to just mount to the sky ... at some point, the OPEC production cuts are going to rebalance the market," said Tim Evans, energy analyst for Citi Futures Perspective, speaking to Reuters.

Cushing is the main delivery point for Nymex crude contracts and figures from the site show that stocks are reaching record levels there as demand remains weak.