Heating oil pulls back, crude accelerates

13/03/2009

Heating oil has retreated from the rally witnessed yesterday (March 12th) during early trading this morning, while crude has continued to make gains.

On the New York Mercantile Exchange, light, sweet crude contracts pushed above $47 (£33.49) a barrel and was up 38 cents by 6:55 Eastern Time.

Meanwhile, heating oil contracts were down 0.4 cents on the gallon at 6:57 Eastern Time, trading at $1.2210 after gaining nearly ten cents during trading yesterday on the back of predictions that the Organisation of the Petroleum Exporting Countries' (Opec's) campaign to prop up crude prices and address the supply glut by strangling output was nearing fruition.

After the warning from the International Energy Agency that a supply shortfall may soon be imminent, all eyes are turning to the cartel for indications of whether leaders will decide to enact further cuts at its meeting in Vienna on Sunday.

A panel of industry analysts polled by Reuters has bet against such a manoeuvre, with experts predicting that they will instead look to enforce full compliance with existing supply constrictions.