Oil Prices Fall on Reduced Demand Predictions

The Energy Information Administration released new data today, reducing predictions for global oil demand by 50,000 barrels per day in 2008 and 450,000 barrels per day in 2009.  The EIA also forecast lower gross domestic product growth for 2008 and 2009.

The negative economic news of the day appeared to dominated the markets, dragging down stock markets as well as crude and heating oil.  The price for a barrel of crude dropped by about 4% to settle at $42.44.  The price for a gallon of heating oil fell by 3.5%.

HEAT USA price experts were pleased to reverse their prediction of a slight price increase in tomorrow’s retail heating oil price, instead forecasting  a moderate price decrease.

HEAT USA Price Report
Evening projection (for Wednesday’s average retail heating oil price per gallon): DOWN $0.05