Oil Prices Fall on Inventory Data

As of 9:02 am EST, the price of crude had dropped by 1.5 percent to reach $75.84 a barrel and the price of heating oil had fallen by 1.4 percent.

HEAT USA Price Report

Today’s average retail heating oil price per gallon: Down $0.01
Morning projection (for Friday’s average price per gallon): Down $0.03

Oil prices slipped on Thursday morning after Wednesday’s inventory report showed that demand for oil remained low. Crude oil inventories grew by 2.3 million barrels, far more than expected, and supplies of distillates, which include heating oil and diesel, shrank less than many analysts predicted. The surprising inventory numbers indicate that the recovery in manufacturing—which caused oil prices to surge earlier in the week—has not yet led to higher oil demand. A strong dollar has further weighed on oil prices, since it drives down demand by making oil more expensive for holders of other currencies.

HEAT USA price experts report that investors are now looking toward the next release of US economic data, which comes on Friday when employment figures are released. At least until then, weak demand and the value of the dollar will likely keep oil prices down.