Heating oil prices remain consistent

28/09/2009

Oil prices dropped to below $66 a barrel on Monday (September 28th) as investors examined the health of the US economy.

Benchmark crude oil prices edged closer to the bottom of the $65 to $75 range that has been consistent for a number of months.

On the New York Mercantile Exchange crude for November delivery was down to $65.62 a barrel by midday Singapore time, reports the Associated Press.

Consumer demand seemingly remains low despite an improving global economic situation. The economic situation in the US will be further analysed this Friday when the Labor Department's monthly jobs report is released.

Investors will be granted information about consumer confidence, manufacturing, home prices, factory orders and construction spending.

Heating oil prices remained consistent at $1.67 per gallon, gasoline for October delivery dropped 0.95 cents to $1.61 a gallon and natural gas fell 1.2 cents to $3.97 per 1,000 cubic feet.

Last week Clarence Chu, a trader at market maker Hudson Capital Energy in Singapore, predicted that oil prices could fall below the $65 mark if stockpiles continued to increase.