Oil Prices Bounce Back on Inventory Data, Nigeria Violence

At 9:18 am EDT, the price of crude had gained 2.6 percent to climb to $71.69 a barrel and the price of heating oil had increased by 1.9 percent.

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

Oil prices climbed back this morning, covering much of the ground lost in yesterday’s substantial reductions.  The American Petroleum Institute’s inventory numbers for US petroleum products showed a big drawdown in crude stocks—6.8 million barrels—presumably as a result of increased refinery activity in preparation for the 4th of July holiday.  The Energy Information Administration’s stockpile figures, regarded as more complete and reliable than the API data, will be released later this morning.  EIA data is expected to show a large crude drawdown as well.  Continuing violence in Nigeria also supported prices this morning, following an announcement on Tuesday by Royal Dutch Shell that rebel attacks have reduced Nigerian output by 50 percent in recent months.

HEAT USA price experts reported that much of the expected reduction in retail prices today had been cancelled out by a 9:30 am price change.  They forecast additional price increases to take place tomorrow.