Heating oil halts on Nymex

23/07/2009

The rally seen in heating oil prices this week has come to a halt following the latest demand data from the Energy Information Administration (EIA).

In its report yesterday, the authority said that distillates such as heating oil rose by 1.2 million barrels last week, taking total stocks to 160.5 million barrels.

With this sharp rally, the 12-month increase in heating oil stocks rose to 160.5 million barrels.

Weak demand was also seen in propane and gasoline inventories, offsetting a reduction in crude stocks over the course of the week.

Following the publication, heating oil was down fractionally during electronic trading on the New York Mercantile Exchange (Nymex), mimicking activity in crude futures, which hovered around the $65 (£39) mark.

Meanwhile, August delivery heating oil contracts were selling for around $1.70 a gallon.

Further data from the EIA showed that last week, spot prices on heating oil stood at $1.619 a gallon, down $2.055 on the same period in 2008.