Heating Oil, Gasoline Advance on Chinese and U.S. Economic Gains
Heating oil and gasoline climbed as factory output in China rose to the highest level in seven months following reports last week of U.S. economic gains.
Futures rose after China’s Purchasing Managers’ Index reached 50.6 in November, according to the National Bureau of Statistics and China Federation of Logistics and Purchasing. U.S. economic growth accelerated in the third quarter, weekly jobless claims fell and pending home resales climbed in October, all signs that fuel demand may increase.
“We’ve been rallying on the economic headlines starting last week with the third-quarter U.S. GDP and now factory orders in China,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.
January-delivery heating oil rose 3.15 cents, or 1 percent, to $3.0922 a gallon at 9:29 a.m. on the New York Mercantile Exchange. Prices fell 0.9 percent last month.
Gasoline for January delivery advanced 2.85 cents, or 1 percent, to $2.7588 a gallon on the exchange. Prices were almost unchanged in October.
Gross domestic product grew at a 2.7 percent annual rate in the third quarter, up from a 2 percent prior estimate, revised figures from the Commerce Department showed. Applications for jobless benefits fell by 23,000 to 393,000 in the week ended Nov. 24, according to Labor Department data.
The index of pending home resales climbed 5.2 percent in October, after a revised 0.4 percent gain in September, the National Association of Realtors reported.
“Growth in the Chinese and U.S. economies is supporting prices,” Lipow said.
The average nationwide cost for regular gasoline fell 0.4 cent to $3.387 a gallon, AAA said today on its website. That’s the lowest average since July 11. The pump price reached a 2012 high of $3.936 on April 4.
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