Oil Prices Dive on Stronger Dollar, Slow Economic Recovery

Oil prices fell further and faster than they had in more than a week this morning, driven down by a stronger US dollar and comments from the Obama Administration that limited hopes of a speedy economic recovery.  Top economic adviser to the President, Paul Volcker, said yesterday that America’s recovery from the current economic recession would be a “long slog,” CNBC.com reported.  The value of the US dollar rose to a one-month high against the euro, making oil contracts less attractive to bargain-hunting investors.

At 9:17 am EDT, the price of crude had lost 6.7 percent, falling to $46.95 a barrel.  The price of heating oil had lost 5.4 percent.

HEAT USA price experts were glad to see the price correction they had been expecting after last week’s incremental gains.  They predicted a moderate-to-large drop in retail heating oil prices tomorrow.

HEAT USA Price Report
Today’s average retail heating oil price per gallon: NO CHANGE
Morning projection (for Tuesday’s average retail price per gallon): DOWN $0.06