Strong heating oil gains continue

30/06/2009

Heating oil prices have continued to move upwards rapidly during electronic trading this morning (June 30th), with the rally supported by mounting concerns about supply stability in Nigeria.

The July delivery heating oil contract surged along with crude yesterday after the Movement for the Emancipation of the Niger Delta announced that it had attacked an offshore oil platform owned and operated by Shell.

The commodity closed for the day at $1.7845 (£1.07), up 5.3 cents on the gallon. The rally has continued in electronic trading this morning, with a further 2.4 cents gained by 04:31 Eastern Time.

Speaking to Dow Jones Newswires, Christopher Mennis, president of brokerage New Wave Energy in Aptos, commented: "The situation in Nigeria is not going away. It seems to be getting worse and worse."

Meanwhile, the demand picture was also marred by the publication of a new report from the International Energy Agency in which it cut its medium-term outlook for growth in consumption of crude products.