Heating oil prices increase slightly

27/10/2009

Heating oil prices increased by 1.06 cents to $2.04 a gallon this Tuesday (October 27th).

London Brent crude oil prices were $77.27 per barrel, an increase of one cent, on London's ICE Futures exchange, reports Bloomberg.

Yesterday the commodity had ended the session at $77.26, a decrease of $1.66, or 2.1 per cent.

The market will now turn its attention to the US Energy Department report tomorrow that is expected to show that distillate stockpiles, including heating oil and diesel, fell last week.

Crude oil stockpiles are predicted to have risen by 1.5 million barrels last week, according to a survey by Bloomberg.

Ken Hasegawa, a commodity derivatives sales manager at broker Newedge in Tokyo, said: "Unless there [is/was] a collapse in the economy, this market would be supported at around $75 a barrel."

He added that $82 is the upper limit at present.

On Sunday positive news was received by traders that the Movement for the Emancipation of the Niger Delta, a Nigerian militant group, had called an indefinite ceasefire.