Heating oil prices lower this Wednesday

28/10/2009

Heating oil prices fell 1.01 cents to $2.05 a gallon this Wednesday (October 27th).

London Brent crude oil prices were $77.51 per barrel, a fall of 41 cents, on London's ICE Futures exchange, reports the Associated Press.

The US government's Department of Energy will release its weekly report of American stockpiles for the week ending October 23rd this Wednesday.

According to a poll by Dow Jones Newswires stockpiles of distillates, which include diesel and heating oil, are expected to decline by 1.1 million barrels.

VTB Capital analyst Andrey Kryuchenkov said: "Colder weather in the US will in our view support demand for distillates, while we expect crude stocks to rise on the back of relatively strong imports."

He added that analysts were closely monitoring distillate stockpiles and would be looking at the US fuel inventories information.

Jorg Zeuner of Liechtenstein-based VP Bank said earlier this week the high stockpiles levels should be able to cope with the increase in demand and help settle the market which is feeling the impact of a weak US dollar.