Oil Prices Drop as Temperatures Rise

As of 8:55 am EST, the price of crude had fallen by 1.72 percent to reach $81.10 a barrel and the price of heating oil had dropped by 1.65 percent.

HEAT USA Price Report

Today’s average retail heating oil price per gallon: Down $0.02
Morning projection (for Wednesday’s average price per gallon): Down $0.04

Warmer weather in the US Northeast has pushed down oil prices this morning, as forecasts predict normal or above-normal temperatures for the next week. Milder weather will ease heating oil demand, and that has dragged down the price of crude and heating oil. Prices were also hit by China’s decision to raise the reserve requirements of banks in an effort to prevent inflation, which will slow the pace of economic growth and act as a brake on rising energy demand. This news came one day after the report that China had imported record amounts of crude in December, which caused an early-morning rally in oil prices, though that rally was not sustained.

HEAT USA price experts report that weather continues to determine the direction of oil prices, and if that trend continues residents of the US Northeast will get a break from freezing temperatures and rising heating oil prices.