Heating oil futures gained in New York amid forecasts of colder-than-normal weather as inventories remain below the 10-year average.
January-delivery heating oil rose as much as 0.6 percent as the U.S. National Oceanic and Atmospheric Administration’s 8-14 day forecast showed warmer-than-normal weather dropping back to normal in parts of the Northeast. U.S. distillate inventories fell 1.09 million barrels to 111.7 million, 14 percent below the 10-year seasonal average, Energy Department data show. Heating oil supplies sank 1.6 million barrels.
“Looking at yesterday’s report, there was a draw of heating oil by more than a million barrels, which leaves us very, very tight on heating oil inventory as we head into the winter,” Andrew Lebow, a senior vice president at Jefferies Bache LLC in New York, said in a phone interview. “With the combination of low inventories and the prospect of demand increases from colder weather, an upward movement in price is expected.”
Heating oil for January delivery rose 1.92 cents, or 0.6 percent, to $3.0548 a gallon at 12:06 p.m. on the New York Mercantile Exchange.
Gasoline for January delivery rose 0.93 cent, or 0.3 percent, to $2.7524 a gallon on the Nymex.
The average nationwide cost for regular gasoline sank 0.7 cent to a $3.219 a gallon, AAA said today on its website. That’s the 28th-straight-day of falling prices, and the lowest level since Dec. 21, 2011.
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