Heating Oil Falls but Crude Steadies Before Supply Data COMMODITIES MARKETPLACE By Bloomberg
Posted on: Wednesday, 7 December 2005, 12:00 CST
By Mark Shenk
The price of crude oil was steady Tuesday, while heating oil fell for the first day in five amid speculation that U.S. refineries are raising fuel output and inventories. A U.S. Energy Department report on Wednesday is expected to show that supplies of distillates, the category that includes heating oil and diesel, rose by 1.75 million barrels last week. "The rally just ran out of steam," said Tom Bentz, an oil broker with BNP Paribas Commodity Futures. "We are going to have to see some sustained cold weather to reduce these inventories."
In 4 p.m. trading on the New York Mercantile Exchange, crude oil for January delivery inched up 3 cents to $59.94. Prices are down 15 percent since touching a record $70.85 a barrel on Aug. 30, the day after Hurricane Katrina struck Louisiana and Mississippi. Heating oil for January delivery fell 1.76 cents, to $1.772 a gallon, in New York. Heating oil reached a record $2.21 on Sept. 1. Heating oil futures have gained 41 percent in the past year.
Gold prices in New York rose for a fifth consecutive session, extending a rally to a 22-year high, amid speculation that rising energy costs would increase the appeal of the precious metal as a hedge against inflation. Gold has rallied 17 percent this year, largely in the past four months, as fuel costs surged to records following Hurricanes Katrina and Rita. "With crude oil strong above $60, it's going to help the inflationary aspect of gold," said Michael Guido, associate director for hedge fund marketing at Societe Generale. Gold for February delivery rose $1.20 to $513.80 an ounce on the Comex division of the New York Mercantile Exchange, the highest closing price for the most-active contract since February 1983. Copper prices in New York fell from a record high as China, the world's largest user of the metal, prepared to sell more reserves.
The State Reserve Bureau plans to sell 20,000 tons of copper Wednesday, the fourth auction since Nov. 16.
Copper futures for March delivery fell 2.05 cents to $1.9870 a pound on the Comex division of the New York Mercantile Exchange.
Source: International Herald Tribune
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