Oil Prices Rise on Chinese Oil Demand

As of 9:16 am EST, the price of crude had climbed by .54 percent to reach $83.20 a barrel and the price of heating oil had increased by .26 percent.

HEAT USA Price Report

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

Record amounts of crude were imported into China in December, showing strong energy demand from the world’s second-largest energy consumer and lifting the price of crude oil and heating oil. China imported 20 million tons of crude in December, nearly 25 percent more than it imported in November. Cold weather in the US Northeast and in Europe continued to point to high heating oil demand, lending further support to heating oil prices. A weak dollar gave a boost to all commodities priced in dollars, including oil.

HEAT USA price experts report that the clear data point on Chinese imports has sparked a rally this morning, even though expectations of Chinese economic growth have already driven up oil prices in recent weeks. Similarly, cold weather has already contributed to higher oil prices, but its impact will be limited until inventory numbers reveal the extent to which it has stoked demand.