Crude and Heating Oil Prices Fall in Anticipation of Inventory Data

The price of crude rose this morning after the market’s opening, supported by the same factors that caused a major increase yesterday: cold weather, OPEC supply cuts, and robust earnings on U.S. and European stock markets.  The gains were short-lived, however–enthusiasm dwindled as the market anticipated the release of last week’s inventory data by the EIA.  The report is again expected to show big increases in crude and gasoline stockpiles.  The price for a barrel of crude had fallen 2.8% to $42.33 as of 9:22 am eastern time.

Heating oil prices fell also, paring yesterday’s gains.  The price was most likely affected by anticipation of the inventory data as well, as the market braced for a surprise increase of distillate stockpiles as was seen last week, despite cold weather throughout the Northern Hemisphere.  The price for a gallon of heating oil has fallen 2.2% on NYMEX as of 9:23 am.

HEAT USA price experts confirmed yesterday’s prediction of small retail price increases today, and predicted small-to-moderate price decreases tomorrow.  The main factor determining tomorrow’s retail prices, they noted, will be the EIA inventory data.

HEAT USA Price Report
Today’s average retail heating oil price per gallon: UP $0.01 to $0.015
Morning projection (for Friday’s average price per gallon): DOWN $0.03