Bloomberg News

Heating Oil Falls as OPEC Lowers Estimate for Global Oil Demand

March 09, 2012

Heating oil fell as the Organization of Petroleum Exporting Countries trimmed its outlook for 2012 oil consumption and a stronger dollar reduced the investment appeal of commodities.

Futures declined as OPEC, supplier of more than 40 percent of the world’s oil, lowered its demand estimate for this year by 130,000 barrels a day to 88.63 million, according to the group’s Vienna-based secretariat. The U.S. currency rose 1.2 percent against the euro at 10:01 a.m. in New York.

“OPEC revised downward demand for 2012 and that is probably putting some pressure on prices,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.

April-delivery heating oil lost 0.57 cent to $3.2638 a gallon at 9:46 a.m. on the New York Mercantile Exchange. Gasoline for April delivery slipped 0.11 cent to $3.3129 a gallon.

Regular gasoline at the pump, averaged nationwide, was unchanged at $3.758 a gallon yesterday, according to AAA data. Prices have increased 15 percent this year, and are 6.6 percent higher than a year earlier.

To contact the reporter on this story: Barbara J Powell in Dallas at bpowell4@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net


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