Hopeful Investors Keep Oil on Track for Biggest Monthly Gain in 10 Years

At 10:17 am EDT, the price of crude had gained 1.4 percent to reach $66.00 a barrel and the price of heating oil had risen by 2.2 percent.

HEAT USA Price Report
Today’s average retail heating oil price per gallon: UP $0.05
Morning projection (for Monday’s average retail price): UP $0.03

Positive economic news from the US and Japan stoked investors’ optimism for economic recovery and resurgent oil demand, leading to more gains for oil prices this morning.  On the final trading day in May, crude is on pace to post the largest one-month price gain since March of 1999—an increase of more than 30 percent.  Although demand for oil remains weak and inventories are still swollen, yesterday’s data released by the US EIA showed big drawdowns in US petroleum stockpiles, indicating that demand may be recovering.  New data released today showed that the US economy shrank less than expected in the first quarter and a report from Japan showed that industrial production in the country increased by 5.2 percent in April.  These bits of news from the world’s two largest economies supported hopes that economic recovery is underway, leading to rising oil prices.

HEAT USA price experts confirmed yesterday’s prediction of moderate increases in retail heating oil prices, and predicted yet another moderate-to-large increase to go into effect on Monday.