Heating Oil Gains on Colder Weather Outlook and Export Demand
By Barbara Powell - Jan 14, 2013
Heating oil gained on speculation that cold weather in the U.S. will boost demand for the fuel and higher gasoil prices in Europe will attract shipments.
Futures rose for the first time in three days as the National Weather Service’s Climate Prediction Center estimated temperatures will be lower than normal across the Northeast from Jan. 19 through Jan. 27. Gasoil rallied in Europe as the cold deepened across the continent.
“This time of the year it’s supported by colder weather,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston. “Gasoil tends to draw up heating oil since Europe is a large importer of U.S. distillate.”