Heating Oil Gains on Speculation Global Diesel Demand to Rise
Heating oil rose on speculation that global diesel demand will increase as China eases restrictions on investing in banks.
Futures gained as China’s regulators eliminated a rule limiting insurers’ investments in commercial banks. China will make macroeconomic policies more targeted and effective, the official Xinhua News Agencyreported, citing a meeting of the Communist Party’s ruling Politburo.
“The new government is talking about more stimulus in China and that is supportive for the market,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago.
January-delivery heating oil rose 1.3 cents, or 0.4 percent, to $3.017 a gallon at 9:49 a.m. on the New York Mercantile Exchange.
The Energy Department is scheduled to report last week’s inventories at 10:30 a.m. today in Washington. The department will probably say that supplies of distillates, including heating oil and diesel, increased 850,000 barrels, according to the median estimate of 12 analysts in a survey by Bloomberg. Gasoline inventories rose 1.55 million barrels, the survey showed.
“I expect that gasoline is going to build as refineries on the East Coast and other refineries around the country have returned from maintenance,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.
Gasoline for January delivery fell 0.28 cent to $2.6862 a gallon, the third consecutive decline.
The average nationwide cost for regular gasoline fell 0.1 cent to a $3.38 a gallon, AAA said today on its website. That’s the lowest level since July 6. The pump price reached a 2012 high of $3.936 on April 4.
To contact the reporter on this story: Barbara J Powell in Dallas at firstname.lastname@example.org
To contact the editor responsible for this story: Dan Stets at email@example.com