Heating oil stockpiles predicted to decrease

03/11/2009

Supplies of distillate fuel in the US, a category that includes heating oil and diesel, were predicted to be 167.8 million barrels, a decrease of 850,000 barrels, according to a Bloomberg survey.

The US Energy Department is scheduled to release its weekly report at 10:30 tomorrow in Washington.

London Brent crude oil for December delivery was trading at $76.07 per barrel - a 48 cents decrease - this Tuesday (November 3rd) on London's ICE Futures exchange.
Yesterday the contract rose to $76.55, a $1.35 increase.

Victor Shum, a senior principal at consultants Purvin & Gertz in Singapore, said: "The upbeat manufacturing reports from the US, China and even Europe has lifted sentiment in the market and right now it's all really sentiment driven."

He added that oil continues to take its cues from financial considerations.

Clarence Chu, a trader at Hudson Capital Energy said earlier this week that he anticipated oil prices to move back towards the $70 mark soon.