Oil Prices Turn in Moderate Losses as Flu Pandemic Fears Continue

The price of crude closed lower today, pulled down by fears that the outbreak of swine flue that originated in Mexico and has spread to the US and Europe could lead to an economically devastating pandemic.  Immediate concerns center on reduced travel that could seriously diminish demand for jet fuel.  The value of the US dollar climbed today as investors sought refuge from swine flu-induced uncertainty, which also dragged down the price of oil.

The price of crude closed 2.7 percent lower at $50.14 a barrel and the price of heating oil lost 3.3 percent on the day.

HEAT USA price experts were pleased to see the moderate drop in oil prices, thought it was slightly smaller than they had expected.

HEAT USA Price Report
Evening projection (for Tuesday’s average retail heating oil price per gallon): DOWN $0.04