Oil Prices Climb on Chinese Manufacturing Data, Weak Dollar

As of 9:00 am EST, the price of crude had gained by 1.15 percent to reach $78.17 a barrel and the price of heating oil had climbed by 1.36 percent.

HEAT USA Price Report

Today’s average retail heating oil price per gallon: Up $0.06
Morning projection (for Wednesday’s average price per gallon): Up $0.04

Worries about Dubai faded and investors gained confidence that the global financial system would weather any fallout from Dubai’s debt crisis. Removing that concern allowed oil prices to rise on the same factors that have aided its climb in recent months: a weak dollar, which makes commodities attractive as a hedge against inflation, and positive economic data from China, which supports optimism about general economic recovery. This week’s inventory reports are expected to show little change, but the dollar and economic optimism continue to outweigh the large supplies of heating oil and crude.

HEAT USA price experts report that today’s data from China points to increased oil demand from the world’s second-largest consumer of oil, and investors look to today’s release of economic data from the biggest oil user, the US, for more signs that global oil demand is poised to rise.