America's LargestOil Prices Climb on Weak Dollar, Demand Forecasts
As of 8:46 am EST, the price of crude had risen by 0.4 percent to reach $74.83 a barrel and the price of heating oil had increased by 0.7 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: Up $0.01
Morning projection (for Friday’s average price per gallon): Up $0.03
EU leaders met Thursday to discuss a financial bailout plan for Greece, and this meeting bolstered the euro and weakened the dollar. As the dollar weakens crude oil and heating oil become cheaper investments for traders holding other currencies, which drives up demand and prices. Forecasts for improved oil demand in 2010 also lifted prices. The International Energy Agency (IEA) revised its forecast and said oil demand would grow faster than expected this year; the EIA also predicted demand growth and expected a barrel of crude oil to average $81 in the second half of the year.
HEAT USA price experts report that despite forecasts, there has yet to be much evidence of growing oil demand. That could change on Friday when the EIA releases its delayed inventory report. Because of the blizzard and cold weather that have hit the East Coast, inventories of distillates, which include heating oil and diesel, are most likely to have fallen.
Oil Prices Dip as API Data Shows Build in Crude Supplies
As of 8:50 am EST, the price of crude had slipped by 0.4 percent to reach $73.47 a barrel and the price of heating oil had fallen by 0.5 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: Up $0.05
Morning projection (for Thursday’s average price per gallon): Down $0.01
Oil prices have fluctuated this morning according to the movement of the dollar against the euro; the euro has been volatile as investors assess whether Europe will bail Greece out of its debt crisis. Every signal that Europe will aid Greece strengthens the euro, making the dollar weaker and pushing investors to tangible commodities such as oil. Despite some help from the euro, the API’s inventory report showed a large increase in supplies of crude oil and heightened concerns about weak oil demand. Inventories of distillates, which include heating oil and diesel, fell by 1.5 million barrels but crude inventories gained a whopping 7.2 million barrels, according to the API. With all that crude oil, and refinery rates falling once again, even a blizzard on the East Coast has not lifted heating oil prices.
HEAT USA price experts report that the EIA’s inventory report, normally released at 10:30 am on Wednesday, has been delayed until Friday because the snowstorm has closed government offices. The delay in the EIA report could add to the influence of the API’s numbers over oil markets for the next two days.
Oil Prices Rise as Dollar Weakens, Temps Fall
As of 8:54 am EST, the price of crude had climbed by 1.2 percent to reach $72.74 a barrel and the price of heating oil had increased by 1.4 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: No Change
Morning projection (for Wednesday’s average price per gallon): Up $0.03
The dollar fell from its highest point against the euro in eight-and-a-half months, lifting the price of crude and heating oil. Since crude and heating oil futures are priced in dollars, a weak dollar makes them cheaper for investors who hold other currencies. Low temperatures and snowy weather forecast for the US Northeast, the world’s largest heating oil market, has also supported oil prices as investors anticipate an increase in demand for heating oil.
HEAT USA price experts report that demand concerns remain, and weekly inventory reports could drag down oil prices, but oil prices today could rise higher if the dollar continues its decline.
Oil Prices Climb on Low Temps, Weak Dollar
As of 8:54 am EST, the price of crude had increased by 0.2 percent to reach $71.33 a barrel and the price of heating oil had risen by 0.2 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: Down $0.05
Morning projection (for Tuesday’s average price per gallon): Up $0.02
The combination of cold weather, which comes on the heels of a severe snowstorm in the mid-Atlantic region, and a weak dollar has pushed oil prices higher today. The storm did not reach as far north as New England, an area more dependent on heating oil, but low temperatures are affecting most of the Eastern seaboard and lifting demand for heating oil, thereby supporting higher prices. A weak dollar has also contributed to higher crude and heating oil prices, since it makes commodities priced in dollars cheaper for investors, which also raises demand.
HEAT USA price experts report that oil prices are rebounding after sharp declines at the end of last week, but concerns about the sluggishness of the US economic recovery have moderated oil’s gains.
Oil Prices Little Changed After Jobs Report
As of 9:02 am EST, the price of crude had climbed by 0.4 percent to reach $73.44 a barrel and the price of heating oil had fallen by 0.1 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: Down $0.08
Morning projection (for Monday’s average price per gallon): Down $0.01
Oil prices steadied after plummeting on Thursday in response to concerns over US employment. Data released Thursday showed that unemployment claims rose more than expected, and on Friday morning the Labor Department reported that US employers cut 20,000 jobs. Friday morning’s report did not move the markets very much, since yesterday’s dramatic drop in oil prices had already presumed weak employment figures in the US. Persistent unemployment threatens any economic recovery that would in turn raise oil demand and lift prices.
HEAT USA price experts report that optimism regarding the US economy at the beginning of the week has been reversed, causing oil prices to slide. However, cold weather is forecast for the US Northeast, which could swell demand for heating oil in the coming week and increase heating oil prices.
Oil Prices Fall on Inventory Data
As of 9:02 am EST, the price of crude had dropped by 1.5 percent to reach $75.84 a barrel and the price of heating oil had fallen by 1.4 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: Down $0.01
Morning projection (for Friday’s average price per gallon): Down $0.03
Oil prices slipped on Thursday morning after Wednesday’s inventory report showed that demand for oil remained low. Crude oil inventories grew by 2.3 million barrels, far more than expected, and supplies of distillates, which include heating oil and diesel, shrank less than many analysts predicted. The surprising inventory numbers indicate that the recovery in manufacturing—which caused oil prices to surge earlier in the week—has not yet led to higher oil demand. A strong dollar has further weighed on oil prices, since it drives down demand by making oil more expensive for holders of other currencies.
HEAT USA price experts report that investors are now looking toward the next release of US economic data, which comes on Friday when employment figures are released. At least until then, weak demand and the value of the dollar will likely keep oil prices down.
Oil Prices Are Flat Ahead of EIA Inventory Report
As of 9:08 am EST, the price of crude had fallen by 0.2 percent to reach $77.06 a barrel and the price of heating oil was unchanged.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: Up $0.08
Morning projection (for Thursday’s average price per gallon): Up $0.03
Oil prices were little changed after earlier trading activity pushed crude oil briefly above $78 a barrel. The EIA’s inventory report is expected to show a decline in stockpiles of distillates, which include heating oil and diesel, due to cold weather in the US Northeast. Analysts are split in their predictions of whether crude inventories grew or shrank; the API’s inventory data, released Tuesday afternoon, showed a 4.7 million barrel increase in crude inventories. If the EIA were to confirm such a buildup, it could weigh on the prices of all oil products.
HEAT USA price experts report that investors await the EIA report, due at 10:30 am. Crude and heating oil prices have risen sharply in recent days, partly because of expectations that fuel demand in the US has increased. That could mute the impact of the EIA’s inventory numbers, since growing oil demand has already been accounted for in current oil prices.
Oil Prices Rise on US Economic Data
As of 9:57 am EST, the price of crude had increased by 0.7 percent to reach $74.92 a barrel and the price of heating oil had climbed by 0.6 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: Up $0.05
Morning projection (for Wednesday’s average price per gallon): Up $0.02
Oil prices continued to rally today as the US economy showed signs of improving. Monday’s positive manufacturing data—the Institute for Supply Management index hit its highest point since August 2004—spurred the price of crude and heating oil, and continued to push oil prices higher on Tuesday. Manufacturing data also put Friday’s GDP report in a more positive light. News that the US GDP grew by 5.7 percent in the fourth quarter had little impact on oil prices, but when paired with growth in manufacturing the two data points signal economic recovery. Positive economic news has generated speculation that fuel inventories will decline this week, lifting oil prices further.
HEAT USA price experts report that this week’s inventory reports will test whether or not manufacturing and GDP growth has translated into increased fuel demand. If inventories fall, that could give oil prices more momentum in this week’s rally.
Oil Prices Rise on Weak Dollar, Attack on Nigerian Pipeline
As of 9:03 am EST, the price of crude had climbed by 0.6 percent to reach $73.31 a barrel and the price of heating oil had risen by 0.7 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: Down $0.01
Morning projection (for Tuesday’s average price per gallon): Up $0.02
Oil prices climbed on Monday, helped by a weaker dollar and a threat to Nigeria’s oil supply. President Obama announced that the US budget deficit would hit record highs in 2010, which has eroded the value of the dollar and increased the appeal of commodities as a hedge against inflation. An attack on one of Shell’s oil pipelines in Nigeria caused a loss in production and raised concerns that renewed militant attacks could seriously disrupt Nigeria’s oil output. Despite this morning’s rally, investors continue to voice concerns about weak demand in the US and look to economic data to be released this week to shed light on the next move in oil prices.
HEAT USA price experts report that corporate earnings reports of several major oil companies will be released this week, along with data on the US manufacturing sector and non-farm payrolls. If these reports point to economic growth they will bolster today’s rally.
Oil Prices Rise on US GDP Growth
As of 8:52 am EST, the price of crude had climbed by 1.4 percent to reach $74.68 a barrel and the price of heating oil had risen by 1.0 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: Up $0.01
Morning projection (for Monday’s average price per gallon): Up $0.03
Oil prices spiked this morning after it was reported that the US economy grew much faster than expected in the fourth quarter. According to the Commerce Department, US GDP grew by 5.7 percent, its fastest growth rate in six years. Economic growth would spur fuel demand in the US, which in recent weeks has been shrinking and bringing down the price of crude and heating oil. Oil demand has yet to recover, but futures prices on NYMEX are taking the improved GDP figures into account.
HEAT USA price experts report that this week may still see an overall decline in oil prices, which are also set to experience their first monthly decline since July. However, more news of economic growth will continue to support higher oil prices.
Oil Prices Climb on Low Interest Rates, State of the Union
As of 8:56 am EST, the price of crude had risen by 0.6 percent to reach $74.09 a barrel and the price of heating oil had gained 0.4 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: Down $0.03
Morning projection (for Friday’s average price per gallon): Up $0.02
Investors in stock markets and commodities markets were encouraged by the Federal Reserve’s pledge to keep interest rates low and President Barack Obama’s focus on jobs and deficit reduction in his State of the Union speech. The Fed’s decision and Obama’s speech gave investors confidence in economic recovery, which would spur fuel demand and has therefore lifted oil prices.
HEAT USA price experts report that demand and refining rates remain low, but positive economic news could push oil prices higher.
Oil Prices Climb on API Inventory Data
As of 8:52 am EST, the price of crude had edged up by 0.1 percent to reach $74.77 a barrel and the price of heating oil had risen by 0.5 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: Down $0.02
Morning projection (for Thursday’s average price per gallon): Up $0.03
Surprising inventory numbers from the API pushed oil prices higher this morning. The industry group reported that stockpiles of crude oil fell by 2.2 million barrels, against expectations that supplies would gain more than a million barrels. Inventories of distillates, which include heating oil and diesel, dropped by 2 million barrels, according to the API’s numbers. Crude and heating oil prices have made gains so far today despite a stronger dollar, which typically depresses commodity prices.
HEAT USA price experts report that investors now await the EIA inventory report. EIA data is usually considered more authoritative and sometimes diverges widely from the API’s figures.
Oil Prices Fall as China Cuts Lending
As of 8:57 am EST, the price of crude had dropped by 1.4 percent to reach $74.24 a barrel and the price of heating oil had fallen by 1.1 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: Up $0.02
Morning projection (for Wednesday’s average price per gallon): Down $0.03
China’s lending restrictions were announced last week but only implemented today, causing oil prices to fall. With supplies more than capable of meeting demand, oil price are unlikely to rise in a sustained fashion without robust economic growth in China or the US, neither of which is likely in the near term. China has restricted lending to head off inflation and avoid financial bubbles in assets like real estate, which will slow its economic growth. This week’s inventory reports are expected to show another increase in supplies of crude oil, and that expectation is further weighing on oil prices. Analysts expect a decline in supplies of distillates, which includes heating oil and diesel, but that has not lifted the price of heating oil.
HEAT USA price experts report that nearly all indicators suggest lower oil prices today, and possibly through the week. Distillate inventories may fall, but so may refining rates, which could lead to a repeat of last week when heating oil prices declined despite falling distillate inventories.
Oil Prices Rise on Weak Dollar
As of 9:24 am EST, the price of crude had inched up by 0.1 percent to reach $74.62 a barrel and the price of heating oil had climbed by 0.3 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: Down $0.04
Morning projection (for Tuesday’s average price per gallon): Up $0.02
Oil prices have been supported by a weak dollar, with the price of heating oil rising more sharply than crude. The dollar’s weakness has overcome the impact of lingering concerns over China’s monetary policy and President Obama’s plan to curb risk-taking by banks. The prospect of policies that restrict financial institutions’ freedom to trade or access to credit in the economies of the two largest oil consumers have depressed equities markets and commodities markets.
HEAT USA price experts report that demand for oil remains weak, but the head of Libya’s national oil company called for OPEC members to stick to quotas, which could contract supply and lift oil prices.
Oil Prices Drop on Low Refining Rates
As of 9:09 am EST, the price of crude had fallen by .64 percent to reach $75.89 a barrel and the price of heating oil had dropped by .58 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: Down $0.03
Morning projection (for Monday’s average price per gallon): Down $0.02
Oil continued its slide from yesterday, as low refinery utilization rates signaled weak demand for oil. Refineries in the US were operating at their lowest capacity since 1989, with the exception of hurricane-related shutdowns. The data on refining came out on Thursday but continues to weigh on heating oil prices, overcoming the effect of a drawdown in heating oil inventories. Slumping equities markets lent additional downward pressure on oil prices.
HEAT USA price experts report that there is little to indicate that US oil consumption will change soon, and China has taken steps to slow down growth and avoid inflation, so oil prices could continue their decline next week.
Oil Prices Edge Upward on China’s GDP, API Inventory Report
As of 8:55 am EST, the price of crude had climbed by 0.2 percent to reach $77.90 a barrel and the price of heating oil had risen by 0.3 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: Down $0.02
Morning projection (for Friday’s average price per gallon): Up $0.03
Two pieces of news that typically move oil prices higher—numbers showing strong growth in China’s GDP and industry data showing falling oil inventories—came out yesterday afternoon and this morning, but so far this news has had a limited impact on oil prices. China’s GDP growth comes on the heels of news that its banks were restricting lending, a move that will slow the expansion of the Chinese economy, tempering the effect of positive economic news from the country many believe will drive oil prices throughout the year. The inventory report from the industry group API found that stockpiles of crude oil and distillates, which include heating oil, fell by surprisingly large amounts. However, the EIA’s more authoritative data, due out at 10:30 am, could reverse those findings, so investors are being cautious until then.
HEAT USA price experts report that the EIA report could determine the direction of oil prices for the day. Confirmation that inventories declined would support higher oil prices, even though warm weather and US economic indicators suggest that there has been little change in demand for oil.
Oil Prices Fall as China Restricts Lending
As of 8:50 am EST, the price of crude had dropped by 1.8 percent to reach $77.58 a barrel and the price of heating oil had fallen by 1.5 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: No Change
Morning projection (for Thursday’s average price per gallon): Down $0.04
Oil prices fell as China instructed banks to stop new lending for the rest of January, which will slow down China’s economic growth—a factor many investors are counting on to boost global oil demand and lift prices. With warm weather in the Northeast, heating oil demand is down, and this week’s inventory reports—delayed one day because of the holiday—are expected to show builds in crude oil and distillates, the category of fuel that includes heating oil. A strong dollar has further discouraged investment in oil futures.
HEAT USA price experts report that economic data from China will be released tomorrow, and could support higher oil prices. However, if inventories climb as expected, those growing supplies will weigh on oil prices and mitigate the effect of positive economic news.
Oil Prices Fall on Low Demand Expectations
As of 8:46 am EST, the price of crude had declined by .87 percent to reach $77.32 a barrel and the price of heating oil had dropped by 1.53 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: No Change
Morning projection (for Wednesday’s average price per gallon): Down $0.04
Oil prices fell this morning as investors responded to signs of low demand for oil. Mild weather in the US Northeast has curbed demand for heating oil. Distillate inventories, which include heating oil, withstood the recent cold snap and still managed to grow, so above-average temperatures are unlikely to lead to lower supplies. OPEC, in its monthly report affirmed that supplies of oil are large enough to cover any potential increase in oil demand.
HEAT USA price experts report that forecasts for mild weather for the next 10 days could push oil prices further down. China remains a focus of investors, as Chinese economic growth looks to be the one factor that could spur fuel demand enough to overcome the middling demand for heating oil in the US market and drive up oil prices.
Oil Prices Rise After Weeklong Decline
As of 8:52 am EST, the price of crude had climbed by .35 percent to reach $78.27 a barrel and the price of heating oil had inched upward by .07 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: Down $0.03
Morning projection (for Tuesday’s average price per gallon): Up $0.01
After falling for all of last week, oil prices climbed Monday morning on a weak US dollar and forecasts that China will increase its oil imports. A weak dollar makes commodities priced in dollars, such as crude oil and heating oil, cheaper for investors who hold other currencies. Concerns about demand continue to weigh on the oil markets, as an extended cold spell across the northern hemisphere did little to bring down oil inventories, and a warming trend has only heightened those concerns.
HEAT USA price experts report that China could be the focus of oil prices all week, as China releases economic data on its fourth-quarter GDP, retail sales, and industrial production. Signs of growth in China’s economy would point to higher oil demand and could lift oil prices.
Oil Prices Fall for Fifth Straight Day
As of 8:55 am EST, the price of crude had declined by .81 percent to reach $78.75 a barrel and the price of heating oil had dropped by .96 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: Down $0.01
Morning projection (for Monday’s average price per gallon): Down $0.03
Oil prices continue to drop as the cold snap dissipates and oil supplies continue to build. Freezing temperatures in the US Northeast and Europe had driven up heating oil consumption in recent weeks, drawing down inventories and raising prices. Warming weather has removed one element supporting higher oil prices, and poor US retail sales figures diminished expectations that overall economic growth would lead to higher oil demand. As the weather ceased to be a factor pushing oil prices higher, investors looked to economic data, which was discouraging, and the movement of the dollar. The dollar rose against the euro this morning, which exerts downward pressure on all commodity prices. The CFTC’s announcement that it would seek position limits on commodity trading had little impact.
HEAT USA price experts report that temperatures are expected to stay mild for the next week, removing the key that drove oil prices higher in early January. Oil’s downward trend could be reversed by positive economic data, but the weather will continue to weigh on prices.
