Heating oil prices fall

27/03/2009

Crude oil and heating oil have both recorded price drops in trading this morning, after crude reached new highs for the year earlier this week.

Futures on the New York Mercantile Exchange (Nymex) fell back below $54 (£37.75) per barrel in the morning's trading.

The Associated Press (AP) notes that concerns about the sustainability of recent gains and continued doubt as to the recovery of the global economy were behind the falls.

Prices hit a new high for the year on Thursday (March 26th), reaching $54.34 per barrel, but optimism has since waned and prices have fallen back.

Heating oil futures on the Nymex dropped by over two cents per gallon, standing at 145.41c/gal at 07:38 Eastern Time this morning.

The recent gains have left room for a number of declines - and the outlook is volatile - analyst Victor Shum from Purvin and Gertz in Singapore told the AP, adding that there could be a bumpy ride in the near future.