Oil Prices Rise on US Economic Data

As of 9:57 am EST, the price of crude had increased by 0.7 percent to reach $74.92 a barrel and the price of heating oil had climbed by 0.6 percent.

HEAT USA Price Report

Today’s average retail heating oil price per gallon: Up $0.05
Morning projection (for Wednesday’s average price per gallon): Up $0.02

Oil prices continued to rally today as the US economy showed signs of improving. Monday’s positive manufacturing data—the Institute for Supply Management index hit its highest point since August 2004—spurred the price of crude and heating oil, and continued to push oil prices higher on Tuesday. Manufacturing data also put Friday’s GDP report in a more positive light. News that the US GDP grew by 5.7 percent in the fourth quarter had little impact on oil prices, but when paired with growth in manufacturing the two data points signal economic recovery. Positive economic news has generated speculation that fuel inventories will decline this week, lifting oil prices further.

HEAT USA price experts report that this week’s inventory reports will test whether or not manufacturing and GDP growth has translated into increased fuel demand. If inventories fall, that could give oil prices more momentum in this week’s rally.