Heating oil futures at eight-week low

25/09/2009

Heating oil futures in the US closed at an eight-week low this Thursday (September 24th).

Gasoline futures also dropped, ending at their lowest level in almost four-and-a-half months, reports Reuters.

US crude oil futures also settled at their lowest level in eight weeks.

Slow home sales suggested the economy is not yet fully recovered and added to the concerns that there is a lack of demand following a government report on Wednesday of a surprisingly large increase in oil supplies, reports the newswire.

Distillate stocks increased by more than was anticipated and to the highest level since January 14th 1983. An increase of three million barrels means stockpiles currently stand at 170.8 million barrels, the Energy Information Association said.

Tom Bentz, an analyst at BNP Paribas Commodity Futures in New York, said: "Oil broke under $68 and triggered some sell stops."

Mr Bentz suggested earlier this week that a cold winter may be required in order to get rid of the inventory of domestic heating oil.