Additional Saudi Cuts Keep Crude Prices Even; Cold Weather Drives up Heating Oil Prices

It appears that recent OPEC cuts finally made their mark on oil prices this morning, sending the price of crude above $38 a barrel before it fell to $37.58 ($0.01 below its opening price) at 9:45 am eastern time.  A looming cold snap in the Northeast which could bring record low temperatures this week helped drive up the price of heating oil, which had gained 1.8% by 9:45 am.

The news that sparked the price jump was Saudi Arabia’s announcement that it would produce below its OPEC target level in February, its lowest level in more than six years.  Economic concerns over dismal oil demand still had an effect on the market, and will likely keep crude prices flat for the rest of the day.

HEAT USA price experts confirmed the small decrease in retail heating oil prices predicted yesterday, but warned of a larger increase in tomorrow’s prices if the market prices stays high for the rest of the day.

HEAT USA Price Report
Today’s average retail heating oil price per gallon: DOWN $0.005 to $0.02
Morning projection (for tomorrow’s average retail price per gallon): UP $0.04