Oil Prices Dip on Expectations of Inventory Build

At 9:59 am EDT, the price of crude had fallen by 0.8 percent to $71.00 a barrel and the price of heating oil had risen just 0.1 percent.

HEAT USA Price Report

Today’s average retail heating oil price per gallon: NO CHANGE
Morning projection (for Wednesday’s average price per gallon): DOWN $0.02

Crude and heating oil prices reversed three days of gains this morning and fell moderately as traders expect reports of another increase in petroleum product inventories to be announced this afternoon and tomorrow morning.  The economic optimism vs. fundamental forces battle continues after positive manufacturing numbers from the US and China boosted hopes of economic recovery and lifted oil prices until the reality of high supply and low demand struck them down again this morning.  The American Petroleum Institute will release inventory data late this afternoon and the Department of Energy’s Energy Information Administration will report more complete inventory data tomorrow at 10:30 am EDT.

HEAT USA price experts reported that yesterday’s prediction of a slight drop in retail prices was not correct—prices have stayed level since the end of yesterday’s trading.  They predicted a small decrease in prices tomorrow.