Heating Oil Futures up on the back of Hurricane Sandy

U.S. heating oil futures slid on Tuesday Oct 30th, after several days of gains where traders built in a risk premium in anticipation of Hurricane Sandy. The pre Hurricane Sandy gains were wiped out as several key East Coast refineries and pipelines restored operations and traders bet that the demand for fuel would be suppressed in the short term.

However, on the flip side and looking to the medium term, US heating oil supply is at historically low levels with some pundits are predicting that the low levels of supply will exert upward pressures on heating oil prices, especially as the temperatures drop.