Heating oil extends gains

25/02/2009

Heating oil has made further gains on the New York Mercantile Exchange (Nymex) after substantial upward activity witnessed yesterday (February 25th).

By 5:58 Eastern Time, heating oil for March delivery was trading at $1.2109 (83.7p) a gallon, up 0.27 cents on its opening price.

Yesterday, heating oil futures followed crude upwards in a rally which resulted in total gains of 3.2 cents per gallon.

The baseline crude contract rose $1.52 to finish the day at $39.94 a barrel and has continued to climb this morning.

Yesterday's gains have been attributed to a revival in global equity markets which followed a dismal start to the week on Wall St.

On Monday, the New York Stock Exchange hit a 12-year low amid concerns about the fragility of the US financial system.

Obama's administration worked hard to allay fears that the government would pursue nationalisation in the banking sector if economic conditions continue to deteriorate.

Fears about the fitness of the auto industry also stoked the nationalisation debate.