Heating oil price drops

24/09/2009

Oil prices fell to almost $68 a barrel on Thursday (24th September) as the high levels of US stockpiles imply that public demand is still low, the Associated Press reports.

Prices have remained close to the $70 threshold for a number of months and the considerably high level of stock suggests that the worldwide recession isn't grounding to a halt just yet according to the newswire.

Crude oil is priced in dollars so as the dollar falls then so do the oil prices. Therefore, the weakened US dollar has caused oil prices to tumble in recent weeks.

Other Nymex trading reported that heating oil prices dropped 0.72 cents to $1.75 a gallon and gasoline for October delivery held steady at $1.70 a gallon.

Natural gas fell 1.9 cents to $3.84 per 1,000 cubic feet.

Brent crude dropped 54 cents to $67.45 on the ICE Futures exchange.

Yesterday it was reported that heating oil was holding steady.