Oil Prices Up on Persistent Geopolitical Concerns in Gaza and Russia

The price of heating oil had risen 2.5% and the price of crude had gained 1.7% to $47.14 a barrel as of 9:52 eastern time this morning on NYMEX.  The armed conflict in Gaza continued to lead the market following the Israeli ground invasion that began on Saturday.  Fears that the conflict could lead to reduced oil exports from the region intensified as “an Iranian military commander called for Islamic producers to cut supplies to Israel’s supporters in Europe and the United States, the official IRNA news agency reported on Sunday.”  However, an OPEC source told the Reuters news agency that the Iranian’s comments did not reflect the intentions of the cartel and assured that there were no supply cutbacks in the works, according to CNBC.com.  Nevertheless, instability in the region continued to startle investors who believed supply disruptions could be imminent as the fighting in Gaza escalates.

Russia’s refusal to supply Ukraine with natural gas over a still-unresolved contract dispute intensified concerns about Russia’s unreliability as an energy supplier, further contributing to higher oil oil prices.

HEAT USA price experts noted an increase of more than 20 cents in average retail prices since last Monday, and announced another moderate price increase that went into effect this morning.

HEAT USA Price Report
Today’s average retail heating oil price per gallon: UP $0.04 to $0.05
Morning projection (for Tuesday’s average price per gallon): UP $0.04