New Unemployment Numbers Pull Down Oil Prices

Another round of data showing high unemployment renewed fears of a deep and long recession in the U.S. this morning, helping to pull down oil prices. Payroll statistics showed that 524,000 U.S. jobs were cut in December, and that the national unemployment rate has hit a 16-year high of 7.2%. As of 9:22 am eastern time, the price for a barrel of crude had fallen 2.1% to $40.83, and the price of heating oil had dropped 2.2% on NYMEX.

The enduring armed conflict in Gaza offered some support to oil prices, as did growing evidence that OPEC nations are meeting agreed-upon production cuts. However, those factors were outweighed by the fresh evidence that the recession in the U.S., the world’s largest consumer of crude oil, continues to worsen.

HEAT USA price experts confirmed yesterday’s forecast of a slight decline in retail heating oil prices today, and expect a similar decline to take effect on Monday.

HEAT USA Price Report
Today’s average retail heating oil price per gallon: DOWN $0.015 to $0.02
Morning projection (for Monday’s average price per gallon): DOWN $0.03