Oil eases just below 49

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 year8217;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.