More Gloomy News on Economy Drives Down Oil Prices

The price for a barrel of crude dropped off sharply today, losing 9% to close at $41.58 a barrel on NYMEX.  New Labor Department data showed a spike in unemployment in December of 2008 and a private research firm showed U.S. consumer confidence at an all-time low.  The new but familiar economic news in the world’s largest oil-consuming nation combined with swollen reserves of crude oil and related products put intense downward pressure on crude and heating oil prices.  Heating oil also fell sharply today, losing 3.6%.

The possibility of an oil rebound hinges on the U.S. economy’s return to good health, as a quote form CNNMoney.com explains: “A turnaround in demand won’t occur ‘until we start seeing an economic expansion in the United States,’ said Rachel Ziemba, energy analyst with RGE Monitor in New York.”

HEAT USA price experts were extremely happy to report a moderate-to-large decrease in retail prices, effective tomorrow.

HEAT USA Price Report
Evening projection (for Wednesday’s average retail heating oil price per gallon): DOWN $0.04 to $0.05