Heating oil extended rally on US supply data

Source: Dukascopy Bank SA

Energy markets were bullish on Thursday as investors continued to expect China and Eurozone to announce easing measures in the nearest future. Moreover, positive news from the US boosted demand prospects for energy commodities.

Crude oil was flat, balancing between supply concerns from the Middle East and demand uncertainties. Positive labour market data from the US lifted crude oil futures while narrowing trade deficit lingered worries about a decline in crude oil imports.

Brent oil jumped as potential supply disruptions from the Middle East, North Sea and Gulf of Mexico pushed Brent oil futures higher.

Natural gas edged up after US inventory statistics release. US natural gas storage increased less than expected last week. Meanwhile, cooler weather forecasts in the US continued to weight down on demand for the commodity.

Heating oil moved in tandem with Brent oil amid hopes for easing in the US and China. Moreover, low US inventories provided additional support for heating oil prices.

 

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