Saudi Minister’s Comments Keep Oil Prices Higher

The price of crude gained 1.6 percent to close at $63.43 a barrel and the price of heating oil closed 1.1 percent higher.

HEAT USA Price Report
Evening projection (for Thursday’s average retail heating oil price per gallon): UP $0.02

Saudi Oil Minister Ali al-Naimi’s prediction that crude will reach the $75-per-barrel level this year kept oil prices above yesterday’s closing prices for most of the day.   Al-Naimi’s forecast boosted hopes that the recession is in decline and that oil demand will begin to increase in the near future.  In response, the price of crude reached a six-month high for the third consecutive trading day.  Official EIA data on US petroleum reserves to be released tomorrow morning is expected to show declines in crude and gasoline stockpiles, which would further support oil prices.

HEAT USA price experts again saw a slightly larger increase in retail prices than they predicted this morning.