Oil Prices Rebound From Recent Plunge

As of 8:55 am EDT, the price of crude had increased by 3.3 percent to reach $72.39 a barrel and the price of heating oil had risen by 1.5 percent.

HEAT USA Price Report

Today’s average retail heating oil price per gallon: Down $0.07
Morning projection (for Wednesday’s average price per gallon): Up $0.03

Crude oil prices had declined for five days in a row to hit a five-month low, and retail heating oil prices dropped 14 cents in two days, but on Tuesday oil prices bounced back in an early morning rally. Despite this correction, oil prices could be in the middle of a downward trend. The euro remains near a four-year low against the dollar, and the relatively strong dollar limits the appeal of petroleum commodities as a hedge against inflation. Europe’s debt continues to weigh on markets, as do high oil inventories in the US.

HEAT USA price experts report that weekly inventory reports could show a fall in gasoline inventories as the driving season begins, but another build in crude oil inventories is also likely. Depending on the inventory numbers, Tuesday’s rally could be extended on Wednesday.