Oil Prices Continue Slump on Concerns Over Europe’s Debt

As of 8:57 am EDT, the price of crude had fallen by 0.4 percent to reach $71.32 a barrel and the price of heating oil had dropped by 0.5 percent.

HEAT USA Price Report

Today’s average retail heating oil price per gallon: Down $0.07
Morning projection (for Tuesday’s average price per gallon): Down $0.03

Europe’s financial crisis battered the oil markets again on Monday morning. The price of crude oil dipped below $70 a barrel before recovering. Oil prices moved close to flat before the NYMEX opened trading on Monday, but worries that Europe’s efforts to reduce debt will slow economic growth—and therefore curb oil demand—will continue to weigh on prices. The euro dropped to its lowest point against the dollar in four years, which also contributed to lower oil prices. Since crude oil and heating oil are priced in dollars, the dollar’s strength compared to the euro makes those commodities more expensive for traders who hold the European currency, diminishing their appeal as investments.

HEAT USA price experts report that Europe’s debt could cause the global economic recovery to falter, and this prospect has pressured stock markets and commodity markets. Because oil demand is intimately linked to the state of the global economy, oil prices have been particularly affected by growing pessimism regarding the prospects for recovery.