Oil Prices Climb as European Air Traffic Resumes

As of 8:59 am EDT, the price of crude had risen by 1.2 percent to reach $82.44 a barrel and the price of heating oil had increased by 0.9 percent.

HEAT USA Price Report

Today’s average retail heating oil price per gallon: Down $0.06
Morning projection (for Wednesday’s average price per gallon): Up $0.03

Some flights resumed in Europe on Monday, indicating that the drop in jet fuel demand may soon return to normal, which supported higher prices for crude oil and heating oil. Another sign of increasing demand comes from forecasts for weekly oil inventory reports, which analysts expect to show that crude oil supplies in the US declined for the second week in a row. Even some of the concerns surrounding Goldman Sachs eased after the company reported better-than-expected earnings, supporting equities markets, which in turn supports higher oil prices.

HEAT USA price experts report that oil prices are poised to recover some of the losses posted in the previous two days, but Goldman’s troubles and Iceland’s volcano will continue to weigh on prices. British air traffic controllers reported that another ash cloud from Iceland’s volcano was moving into major routes for air traffic, which could bring another disruption of air travel and lower oil prices.