Oil Prices Climb as Dollar Weakens

As of 9:02 am EDT, the price of crude had risen by 0.6 percent to reach $81.11 a barrel and the price of heating oil had increased by 0.5 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

The dollar weakened on Thursday morning as rising European stock markets gave the euro a lift. A weak dollar generally leads to higher commodity prices, since it makes commodities priced in dollars (such as crude oil and heating oil futures) cheaper for traders who hold other currencies, which drives up demand. The euro also rose ahead of a two-day summit of European leaders that will focus on Greece’s debt crisis, further pushing down the value of the dollar and increasing demand for oil. Wednesday’s inventory reports, which showed a large build in crude oil inventories, continue to weigh on oil prices but have been overwhelmed by movement in the dollar.

HEAT USA price experts report that prices on Thursday will likely continue to fluctuate according to changes in currency markets, which will in turn be affected by news from the EU summit. If EU leaders develop a plan to help Greece, the euro will continue to rise, the dollar will continue to fall, and oil prices could push higher.