UPDATE: Drop in Inventories Leads to Midday Price Change

Oil prices got off to a good start this morning, taking their cue from the API’s inventory report, issued Tuesday afternoon. The API found a 2.6 million-barrel drop in inventories of distillates (heating oil and diesel), which was a more substantial decline than analysts had predicted and boosted the price of heating oil and crude. Wednesday morning’s EIA report confirmed the large drawdown of distillates, and also reported that inventories of crude had plummeted by more than 3 million barrels. Oil prices have spiked after the release of these figures, which investors have taken as a sign that demand is significantly higher than previously thought.

HEAT USA Price Report

Midday Price Change: Average retail heating oil prices are UP $0.06 per gallon from this morning.