November 21st, 2011

Heating oil futures slid below $3 a gallon as stocks fell on speculation that a deficit impasse will force $1.2 trillion in automatic U.S. spending cuts and that Europe’s debt crisis threatens global economic recovery.

Heating oil futures fell to a four-week low as a congressional debt-reduction panel is expected to say it can’t reach agreement. Josef Ackermann, chief executive officer of Deutsche Bank AG, said Europe needs a “firewall” to keep the debt crisis contained and should increase the size of a rescue fund.

“The overall weakness is due to the equity market,” said Fred Rigolini, vice president of Paramount Options Inc. in New York. “There’s problems with Congress here passing a debt resolution and concerns about Europe.”

Heating oil futures for December-delivery fell 3.82 cents, or 1.3 percent, to settle at $2.9943 a gallon on the New York Mercantile Exchange, the first settlement below $3 a gallon since Oct. 19.

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