Stock Market Gains Lift Oil Prices

As of 9:12 am EDT, the price of crude had risen by 1.4 percent to reach $80.88 a barrel and the price of heating oil had increased by 1.5 percent.

HEAT USA Price Report

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

Oil prices rose sharply this morning, buoyed by rallying stock markets. Crude and heating oil prices climbed despite some caution ahead of key meetings of the Federal Reserve and OPEC. This morning’s price increases could reflect oil traders’ are confidence that the Federal Reserve will keep interest rates low and that OPEC will maintain current production targets; OPEC may even emphasize member nations’ compliance with quotas at its Wednesday meeting, which could constrain the global supply of crude oil. If the Fed keeps rates low, that will keep the dollar cheap and encourage investment in oil as a hedge against inflation.

HEAT USA price experts report that the Fed will make a statement regarding interest rates later today, and OPEC doesn’t meet until tomorrow, so prices could retreat from their current position as oil traders play it safe before any major announcement that could affect oil prices. However, stock markets and a weak dollar will likely prevent oil prices from falling during the day.