Oil Prices Climb on IEA’s Revised Demand Figures

As of 8:55 am EST, the price of crude had risen by 1.0 percent to reach $82.92 a barrel and the price of heating oil had risen by 1.2 percent.

HEAT USA Price Report

Today’s average retail heating oil price per gallon: No Change
Morning projection (for Monday’s average price per gallon): Up $0.03

The IEA increased its estimate for global oil demand in 2010 by 70,000 barrels per day and pointed to growing energy demand in the developing world as the cause. This reassured traders who thought oil prices might fall because of yesterday’s news that China’s inflation had risen, which could be a precursor to shifting monetary policy in China and slower demand growth. A weak dollar also encouraged investors to buy oil futures, since dollar-priced commodities (like crude oil and heating oil) become cheaper for investors holding other currencies when the dollar is weak.

HEAT USA price experts report that oil demand in North America and Europe remains weak, and those regions are the leading consumers of heating oil. However, heating oil prices are following the price of crude upward, despite lack of demand and warming weather.