Heating oil prices fall

05/11/2009

Heating oil prices fell 1.55 cents to take the price to $2.07 per gallon this Thursday (November 5th).

London Brent crude oil for December delivery was trading at $78.35 per barrel - a 54 cents decrease - on London's ICE Futures exchange, reports the Associated Press.

Barclays Capital said in a report: "Very slowly, the imbalances in the US oil market have been sorting themselves out. A key part of that adjustment has been the winnowing away of the overhang of inventories."

The report also suggested that it expects oil prices to average $76 a barrel in the fourth quarter and $85 next year.

There are suggestions that the economy is improving with a stronger US dollar. The euro slipped to $1.4834 on Thursday in early Asian trading, a decrease from $1.4872 the previous day.

Earlier this week Toby Hassall, a research analyst with CWA Global Markets, said that oil is likely to have taken some strength from the recent economic data.