Distillate supplies 'may rise for a fourth week'

16/09/2009

Stockpiles of distillates such as heating oil could be set for a fourth consecutive weekly rise, reports Bloomberg.

The investment news provider explains that the US Department of Energy was due to publish its latest figures on Wednesday (September 16th).

However, a pre-emptive report from the American Petroleum Institute indicated that inventories of distillates - which include heating oil - had risen beyond their previous 26-year high point.

Eliane Tanner, a commodity strategist in Zurich at Credit Suisse Group, told the news provider: "Inventories of distillates are at very high levels and this could dampen demand for crude oil from refineries in the US."

There was positive news, however, as a falling dollar valuation renewed interest among risk-averse investors in using commodities as a hedge.

Forbes recently reported similarly positive news, predicting a rise in heating oil valuations due to a lack of "barrels coming up the line" over the short term.