Oil prices drop, heating oil supplies increase

23/09/2009

The price of crude oil dropped in New York on Wednesday (September 23rd) as large fuel supplies in the US demonstrated that demand remains subdued in the present market.

Figures from the industry-backed American Petroleum Institute showed that gasoline stockpiles climbed at the fastest rate since January, reports Bloomberg.

Yingxi Yu, a commodities analyst at Barclays Capital Singapore, said: "Macroeconomic conditions are improving but in fundamental data specific to oil, we haven't really seen a decisive break to the upside. The overriding theme hasn't really changed."

Supplies in most consumer nations have been on the increase, spreading concern that the current economic situation has lessened demand worldwide.

Yesterday it was reported by the Environment Agency that domestic heating oil was being purchased in bulk and by larger groups in what is assumed to be an effort by consumers to reduce the heating oil prices that they pay on single purchases.

This brought concerns about the safety of storage for people not used to purchasing such large quantities of domestic heating oil.