Oil Prices Rise on Inventory Forecast, Stronger Euro

As of 8:54 am EDT, the price of crude had increased by 1.0 percent to reach $75.84 a barrel and the price of heating oil had climbed by 0.9 percent.

HEAT USA Price Report

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

Attention in the oil markets could turn to fundamentals for the next two days as traders look ahead to weekly inventory reports in the US. The API releases its figures after the close of trading on Tuesday, and the EIA reports its numbers Wednesday at 10:30 am. Analysts expect that crude oil inventories fell for the third straight week, and this expectation has supported higher prices for crude oil and heating oil. An additional lift for oil prices came as the euro recovered from the low point it hit on late Monday, making the dollar weaker relative to the European currency. Since crude oil and heating oil are priced in dollars, a weaker dollar makes those commodities cheaper for investors who hold other currencies, which increases demand.

HEAT USA price experts report that supplies of distillates, which include heating oil and diesel, likely increased, but that forecast has not affected heating oil prices. If this week follows last week’s pattern, the inventory numbers for crude oil alone will drive prices for crude and refined products.