Oil Prices Drop Further Due to High Inventories

As of 9:11 am EDT, the price of crude had dropped .76 percent to reach 65.39 a barrel and the price of heating oil dipped .8 percent.

HEAT USA Price Report

Today’s average retail heating oil price per gallon: Down $0.07
Morning projection (for Monday’s average price per gallon): Up $0.02

Oil prices continued to sink on Wednesday’s news of inventory increases. Crude and heating oil prices rallied briefly this morning after Goldman Sachs bucked the latest data and forecast an increase in oil demand, but then continued their downward trend. As the fundamentals of supply and demand remain static, traders look to equities and foreign exchange markets, but have yet to find a basis for pushing the price of oil higher. Traders await economic data to be released this morning, looking for signals of economic recovery and therefore a recovery of oil demand as well.

HEAT USA price experts report that heating oil prices will recover after the previous two day’s sharp declines, but any fluctuations will only occur within a narrow price range until there is a clear sign of revival in oil demand. Barring that sign, look for an overall decline in prices during the next week.