Current market for heating oil: Oil prices cannot keep profits

06/29/2022, 08:14 by Josef Weichslberger

Heating oil news - analysis of heating oil prices

Oil prices on international commodity futures markets made further significant gains yesterday, but fell slightly in Asian-dominated trading this morning. As a result, heating oil prices, currently at their lowest level in the past three weeks, will start today with further discounts.

August contracts for European North Sea “Brent” oil are currently at US $ 117.40 per barrel, a barrel of US “West Texas Intermediate” oil currently costs US $ 111.30. The euro fell sharply against the US dollar, which traded at around US $ 1.0505 this morning.

With the new awareness that Saudi Arabia and the United Arab Emirates (UAE) have likely reached their limits in terms of possible production capacities and new production disruptions in Libya and Ecuador, crude oil prices initially continued to rise yesterday. . In addition, stock prices also increased significantly at the start of European-style trading, which provided further momentum.

Further easing of Chinese krone rules also pushed prices up.

On the other hand, there was only the resumption of nuclear negotiations with Iran, on which market operators probably did not have great expectations for the moment.

Economic data, which has been rather weak in recent times, is having a latent braking effect.

Released yesterday after the close of trading, the highly anticipated US oil inventory data from the American Petroleum Institute (API) will weigh on oil prices in Asia this morning. Although crude oil and distillate stocks have decreased, for the first time in weeks there has been a significant increase in petrol stocks, which are so important at this time of year.

After the Department of Energy (DOE) report was canceled last week due to technical issues, stock market traders will take a closer look at the expected report this afternoon.

On the foreign exchange market, the euro lost significantly in value against the US dollar yesterday. At first, our single currency barely reacted to the consumer climate in Germany, which had deteriorated again. In the afternoon, however, the euro fell again after the statements by ECB members on the current inflationary situation were judged a bit too lax.

Despite the currency losses, heating oil prices in Germany will start trading today at slight discounts. Current calculations and initial price trends suggest a decrease of one to one and a half cents per liter in the morning. As a result, prices quietly hit their lowest level in more than three weeks. However, the volume of orders remains at a very low level relative to price requests, which raises concerns about a sharp increase in demand in the fall with long delivery times and further price whims.

Other market reports

Tuesday, 06/28/2022, 08:33

Oil prices rose significantly throughout yesterday. However, as diesel prices have risen much more moderately, there should be lower premiums in diesel prices, at least at the opening.

Monday, 06/27/2022, 08:33

Oil prices have remained relatively stable over the past few weeks and are starting the new trading week with no major changes. As a result, there will be only slight fluctuations in diesel prices.

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