Oil Prices Rise on Weak Dollar, Attack on Nigerian Pipeline

As of 9:03 am EST, the price of crude had climbed by 0.6 percent to reach $73.31 a barrel and the price of heating oil had risen by 0.7 percent.

HEAT USA Price Report

Today’s average retail heating oil price per gallon: Down $0.01
Morning projection (for Tuesday’s average price per gallon): Up $0.02

Oil prices climbed on Monday, helped by a weaker dollar and a threat to Nigeria’s oil supply. President Obama announced that the US budget deficit would hit record highs in 2010, which has eroded the value of the dollar and increased the appeal of commodities as a hedge against inflation. An attack on one of Shell’s oil pipelines in Nigeria caused a loss in production and raised concerns that renewed militant attacks could seriously disrupt Nigeria’s oil output. Despite this morning’s rally, investors continue to voice concerns about weak demand in the US and look to economic data to be released this week to shed light on the next move in oil prices.

HEAT USA price experts report that corporate earnings reports of several major oil companies will be released this week, along with data on the US manufacturing sector and non-farm payrolls. If these reports point to economic growth they will bolster today’s rally.