New York, NY, August 17, 2012 --(PR.com
)-- The FCF Group’s senior analyst, Mr. Charles Haye, recently stated that “all bets are on” Heating oil surging to a high not seen since 2008 as information is already public that this winter’s weather could be the coldest in nearly a decade and adding to this refinery shutdowns will further crimp supply.
This month’s prices rose the most since December 1st, 2010 as the Global and National Weather Service said this year’s winter could be the worst in a long time if their long range forecasts are correct. Hovensa LLC and Sunoco Inc. have plants scheduled for repair and renewals starting October 1st which supply the East Coast, including New York Harbor, the delivery point for New York heating oil futures.
“We’re finally seeing the markets reacting to fundamentals in the oil market,” said Charles Haye, Senior Analyst of The FCF Group in New York and a long time advisor at the New York Mercantile Exchange, (NYMEX).
Heating oil for December delivery added 6.98 cents, or 2.8 percent, to settle at over $3.00 a gallon on the Nymex, the highest settlement for the front-month contract since October 3rd, 2008.
Haye continued, “The U.S. Northeast is the largest user of heating oil and already inventory levels from their main source on the East Coast were the lowest since November 2010 in the week ended August 10th, according to the Energy Department report last week.”
“The unquestionable seasonal demand for heating oil in the near future along with worryingly low inventories and supply constraint data coupled with the meteorologists’ reports has heating oil on most traders’ lips at the moment.”
“Heating oil is going up incrementally because of the data and fundamentals available determine this. There seems to be a buying fever in heating oil futures already and we are still in peak summer with a break out soon expected,” Haye concluded.
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