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Journalism of Courage
Oil prices eased on Monday in profit-taking on heating oil from sharp gains last week sparked by concerns over over low supplies of winter heating fuels.
US light crude for January delivery fell 14 cents a barrel to $48.75 a barrel after rising as high as $49.55 on Monday. Prices are up from a two-month low a week ago of $45.25 as the northern hemisphere prepares for winter with thin heating oil stocks. In London, Brent slipped 29 cents to $44.60 a barrel.
London gas oil, the benchmark for European heating fuel purchases, rose nearly 15 per cent from $400 a tonne on November 15 to peak at $459.75 on Monday before dealers took profits in late trade to $437 a tonne.
In the United States, commercial crude oil inventories are higher than last year but supplies of heating oil are 16 per cent down from a year ago. A surge in Chinese demand for heating oil and diesel has contributed to the rise as China boosts stocks to prevent a repeat of last year’s winter supply crunch. Dealers are watchful for signs of diminished demand from China, where blistering economic expansion this year has fuelled the fastest global oil demand growth for a generation.
