Oil Prices Sink as Dollar Continues to Rise

As of 9:04 am EST, the price of crude had fallen by 1.5 percent to reach $72.82 a barrel and the price of heating oil had declined by .79 percent.

HEAT USA Price Report

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

The dollar continues to drive oil prices, pushing down prices of crude and heating oil; crude fell below $73, its lowest price since mid-October. The dollar’s strength has made all commodities that are traded in dollars, like oil, more expensive to holders of other currencies. While positive economic signs in the US have lifted the dollar, the economy has not recovered enough to drive up oil demand. Inventory reports are due out today and tomorrow, and are expected to show further buildups of crude, which will weigh on the prices of refined products like heating oil as well.

HEAT USA price experts report that oil demand remains largely unchanged, leaving financial factors such as the strength of the dollar to move the oil market. If the dollar continues to gain against other currencies, oil should continue its decline.