Oil Prices Edge Upward on China’s GDP, API Inventory Report

As of 8:55 am EST, the price of crude had climbed by 0.2 percent to reach $77.90 a barrel and the price of heating oil had risen by 0.3 percent.

HEAT USA Price Report

Today’s average retail heating oil price per gallon: Down $0.02
Morning projection (for Friday’s average price per gallon): Up $0.03

Two pieces of news that typically move oil prices higher—numbers showing strong growth in China’s GDP and industry data showing falling oil inventories—came out yesterday afternoon and this morning, but so far this news has had a limited impact on oil prices. China’s GDP growth comes on the heels of news that its banks were restricting lending, a move that will slow the expansion of the Chinese economy, tempering the effect of positive economic news from the country many believe will drive oil prices throughout the year. The inventory report from the industry group API found that stockpiles of crude oil and distillates, which include heating oil, fell by surprisingly large amounts. However, the EIA’s more authoritative data, due out at 10:30 am, could reverse those findings, so investors are being cautious until then.

HEAT USA price experts report that the EIA report could determine the direction of oil prices for the day. Confirmation that inventories declined would support higher oil prices, even though warm weather and US economic indicators suggest that there has been little change in demand for oil.