Heating oil steady after weak demand data

23/01/2009

Heating oil prices have remained relatively static during trading on the New York Mercantile Exchange this morning (January 23rd) despite the publication of weak demand data.

By 11:03 GMT, heating oil for February delivery was selling at $1.3463 (99.33p) a gallon, 200ths of a cent down on its opening price.

The stable activity levels come despite figures from the Energy Information Administration which showed that total US stockpiles of heating oil and other distillate increased by 800,000 over the course of the week ended January 16th.

The statistics are read as a benchmark for demand for crude and other derivatives in the world's largest consumer of oil, with many analysts believing there is little sign of an immediate recovery.

Such weak demand could continue to keep prices subdued, although some experts predict that prices will pick up in the latter half of the year as the world inches towards economic recovery.