Heating oil little changed in early trade

22/04/2009

Wholesale heating oil prices have been little changed in New York this morning (April 22nd), with many analysts awaiting the publication of data from the Energy Information Administration (EIA) before taking a position on the stock.

By 05:48 Eastern Time, the New York Mercantile Exchange's May delivery heating oil contract had dropped to $1.3468 (92.38p), down 0.1 cents on yesterday's closing price.

Trading activity in both heating oil and crude futures has been subdued this morning as many investors awaiting the EIA stockpile data.

Jonathan Kornafel, Asia director for market maker Hudson Capital Energy in Singapore, concurred with a Bloomberg poll predicting another sharp rise in inventories, indicating that demand for crude and heating oil remains weak in the US.

Speaking to the Associated Press, he said: "The oil price doesn't belong above $50 and the trend is definitely to the downside."

"The light at the end of the tunnel is still a freight train bearing down on us."