Oil Prices Drop on Forecasts of Supply Builds

As of 8:45 am EST, the price of crude had fallen by 1.9 percent to reach $80.34 a barrel and the price of heating oil had decreased by 1.7 percent.

HEAT USA Price Report

Today’s average retail heating oil price per gallon: No Change
Morning projection (for Wednesday’s average price per gallon): Down $0.04

After crude oil hit an eight-week high on Monday, predictions that weekly inventory reports will show another buildup of crude supplies have pushed down the prices of crude and heating oil. Analysts expect crude inventories to increase by 2 million barrels, and gasoline supplies to rise by 150,000 barrels. Distillate inventories, which include heating oil and diesel, likely fell by close to 1 million barrels, but as warmer weather arrives in the Northeast and the heating season draws to a close, such declines in distillates have a smaller impact on oil prices.

HEAT USA price experts report that fundamentals of supply and demand have taken center stage in oil markets, and if they remain the focus of trading then oil prices will continue their retreat.