Heating oil stable at $1.38

28/01/2009

Wholesale heating oil prices have held steady around $1.38 (97p) a gallon mark during trading this morning (January 28th).

On the New York Mercantile Exchange, heating oil prices had risen by a sixth of a cent to $ 1.3814 a gallon by 11:07 GMT, having earlier reached a high of $1.3970.

The fractional gains reverse losses witnessed in both heating oil and crude prices yesterday, with the former falling more than five cents by the close of trading.

Investors backed away from crude as data emerged showing that consumer confidence has hit record lows in the US, while housing figures are also weak.

Meanwhile, Abdalla el-Badri, secretary-general of the Organisation of Petroleum Exporting Countries (Opec), told reporters that it is looking to reduce the amount of speculation in oil trading, which he blamed for the sharp fluctuations in prices seen in recent months.

He told Bloomberg: "Opec has repeatedly called for the need to reduce the role of excessive speculative activity in the market. Today, it is impossible to know who is actually buying and selling oil futures."