Heating oil in New York rose to the highest price in more than two weeks on speculation that fuel demand will increase as Italian Prime Minister Mario Monti proposed budget cuts and leaders prepared to meet on Europe’s debt crisis.
Futures advanced as much as 3 percent as Monti will present a 30 billion-euro ($40 billion) plan to policy makers in Rome today. German Chancellor Angela Merkel is scheduled to meet French President Nicolas Sarkozy to advance a plan for stricter enforcement of the region’s deficit rules.
Oil products are rising on “optimism that the Europeans will announce some deal later this week and also the Italian’s introducing an austerity plan,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.
Heating oil for January delivery gained 5.85 cents, or 2 percent, to $3.0485 a gallon at 9:47 a.m. on the New York Mercantile Exchange. The contract rose to $3.0807, the highest intraday price since Nov. 18.
The euro rose 0.6 percent to 1.3472. Germany is keen for the IMF to adopt a “decisive role” in combating the crisis alongside the European rescue fund, Michael Meister, the parliamentary finance spokesman for Merkel’s Christian Democratic Union, said today in a telephone interview.
Gasoline for January delivery gained 2.44 cents, or 0.9 percent, to $2.6406 a gallon on the exchange.
Regular gasoline at the pump, averaged nationwide, fell 0.1 cent to $3.276 a gallon yesterday, according to AAA data. It’s the fifth consecutive drop and the lowest price since Feb. 24.