API Inventory Report Drives Up Oil Prices
At 9:30 am EST, the price of crude had risen 1.8 percent to $75.28 a barrel and the price of heating oil had climbed 1.4 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: Up $0.01
Morning projection (for Wednesday’s average price per gallon): Up $0.04
The American Petroleum Institute’s oil inventory report, released yesterday afternoon, drove up crude and heating oil prices on Tuesday with news of significant drawdowns in US crude and distillate stockpiles. A Reuters poll found that analysts had predicted a 900,000-barrel drop in crude inventories, well below the 3.7 million-barrel decline reported by API. Distillate inventories, on the other hand, fell much less than expected–analysts forecast a drop of 1.9 million barrels as a result of high heating oil demand stemming below-average temperatures in the Northeast (the world’s largest heating oil market)–but the API reported a drop of just 745,000 barrels of distillate fuel. The limited decline in distillate stocks helped prevent major increases in heating oil prices.
HEAT USA price experts expect larger gains for crude and heating oil prices on NYMEX today following the release of the EIA’s weekly inventory data at 10:30 am Eastern Time. The consider a midday heating oil retail price change to be likely.
Rise in Crude Inventories Pulls Oil Prices Down
At 9:15 am EDT, the price of crude had dropped 0.8 percent to $78.46 a barrel and the price of heating oil had lost 0.4 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: NO CHANGE
Morning projection (for Thursday’s price per gallon): DOWN $0.01
The American Petroleum Institute’s weekly inventory report, released yesterday afternoon, showed a large increase in crude oil stocks in the US, which brought about a dip in crude and heating oil prices this morning. The larger-than-expected build in crude stockpiles of 3.8 million barrels stimulated crude’s retreat from its 12-month peak of just over $80 per barrel, reached yesterday. A weak US dollar, which has been identified as the main cause of crude’s steep price climb in recent weeks, continued to lend support this morning, but was (at least temporarily) overshadowed by the API’s inventory data. Some analysts warned that the price dip could foreshadow a “correction” in crude prices, as US fuel demand remains dismal and supplies of petroleum products are still brimming. The Department of Energy’s EIA inventory report, to be released at 10:30 EDT this morning, will likely determine the next big move in crude and heating oil prices.
HEAT USA price experts were glad to see the dip in prices, especially since it was attributed to a fundamental force, rather than unrelated market factors like the value of the dollar or movements on US stock markets. They predicted the modest drop in prices would extend to tomorrow, assuming EIA inventory data showed increases in crude and distillate stocks.
Oil Prices Rise Slightly as Data Indicate Economic Recovery
At 9:28 am EDT, the price of crude had risen 0.14 percent to reach $72.61 a barrel and the price of heating oil inched up .2 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: Up $0.02
Morning projection (for Monday’s average price per gallon): Down $0.02
Crude prices continue to rise despite a climbing dollar and yesterday’s slide in stock prices. Equities markets have been looked to as a leading economic indicator of recovery, but positive economic data earlier in the week have spurred hopes of a global revival and an increase in the demand for oil. If stock prices recover and projections for the global economy remain positive, oil prices could continue to rise in the coming weeks.
HEAT USA price experts reported that oil prices have turned around on news of global economic recovery but expect fundamentals to exert their influence by Monday.
Oil Prices Rise on Expected Inventory Reduction
At 9:57 am EDT, the price of crude had risen by 1.3 percent to $69.75 a barrel and the price of heating oil had gained 1.1 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: UP $0.01
Morning projection (for Wednesday’s price per gallon): DOWN $0.03
Oil prices increased moderately this morning, boosted by predictions of drawdown in crude oil stockpiles to come out of this afternoon’s inventory report from the American Petroleum Institute. The same analysts, however, predicted a major increase in distillate fuel stockpiles, which limited price gains this morning. Traders will watch distillate fuel stockpiles more and more closely as the North American winter approaches as demand for heating oil (a distillate fuel) grows. Continuing increases in distillate stockpiles could lead to major decreases in heating oil prices over the next few weeks. In other news, the notice sent out buy CME group, the owner and operator of the US’s largest commodities exchanges, informing traders that it would tighten enforcement of position limits was later discounted as a “routine” advisory that did not signify stricter enforcement, Reuters reported on Monday.
HEAT USA price experts reported that yesterday’s modest price gains made for a slight increase in retail heating oil prices today, but predicted a decline in prices on Wednesday after the API’s inventory report.
Oil Prices Continue Slide on Stronger Dollar, New Position Limits
At 9:39 EDT, the price of crude had fallen by 0.8 percent to $68.77 a barrel and the price of heating oil was 0.3 percent lower.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: DOWN $0.05
Morning projection (for Tuesday’s average price per gallon): DOWN $0.02
Oil prices dipped lower this morning, continuing a downward trend established on Friday afternoon. The main factor driving prices down was Friday’s announcement by CME group that it would begin to enforce position limits (limits on how many commodities contracts one trader or group and hold at one time) effective today. The US dollar also strengthened slightly, helping to push down prices. The CME announcement is likely to be the first of many new regulations applied to commodities trading, with a special focus on oil trading.
HEAT USA price experts announced that Friday’s oil price declines on NYMEX resulted in a moderate drop in retail prices today and predicted a smaller retail price drop to take effect on Tuesday.
Oil Prices Sink as Big Inventories Weigh Heavy Again
At 8:55 am EDT, the price of crude had fallen by 0.4 percent to $71.63 a barrel and the price of heating oil had lost 0.6 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: DOWN $0.01
Morning projection (for Monday’s price per gallon): DOWN $0.02
Oil prices dipped this morning after three straight days of gains as swollen inventories around the world once again led investors to question whether the current supply and demand picture justifies recent prices. The IEA’s announcement of expectations for steadily increasing global demand over the next 15 months continued to support prices, as did a weak US dollar, but neither factors could overcome the influence of the current high supply, low demand environment. Today’s lower prices mark the latest turn in a cycle of rising and falling prices that are alternately lifted in the short term by positive economic news and driven down by a bleak long-term supply and demand outlook.
HEAT USA price experts reported that yesterday’s relatively flat trading of crude and heating oil led to a small decrease in today’s retail heating oil prices, and predicted another small decrease for Monday.
Oil Prices Dip as OPEC Holds Outputs Steady
At 9:49 am EDT, the price of crude had lost 0.2 percent to fall to $71.20 a barrel and the price of heating oil had fallen by 0.9 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: UP $0.02
Morning projection (for Friday’s price per gallon): UP $0.03
Crude and heating oil prices rose in early trading this morning, but quickly retreated around 9:30 am EDT. Gains had come from a new oil demand forecast from the International Energy Agency that predicted demand for crude would begin to recover at the end of this year and return to year-over-year growth by 2010. Predictably, OPEC chose to keep output levels steady at their meeting in Vienna yesterday, and devoted most of the meeting to emphasizing compliance with current output quotas. Additional support for oil prices came from API data on US petroleum inventories released yesterday afternoon. The API report showed a big drawdown of US crude inventories—7.2 million barrels. Energy Information Administration, to be released this morning, will support or refute the API report.
HEAT USA price experts reported a small gain in retail prices today following yesterday’s oil price gains on NYMEX. They emphasized that EIA inventory data will determine the direction of prices tomorrow.
Oil Prices Continue Climb on Weak Dollar; OPEC to Maintain Output Quotas
At 9:21 am EDT, the price of crude had risen by 0.7 percent to $71.62 a barrel and the price of heating oil had gained 0.9 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: UP $0.06
Morning projection (for Thursday’s average price per gallon): UP $0.01
A weakening US dollar and a major buying of gold that sent the commodity to a high of $1,008 an ounce yesterday continued to lift oil prices today. The troubles in the global financial system that began last year with the collapse of Lehman Brothers has made commodities like gold and oil more stable and therefore more attractive investments. As the value of the dollar continues to slip, oil and other dollar-priced commodities become more attractive to investors buying with foreign currency. OPEC, meeting today in Vienna, will maintain current output levels as the group is generally satisfied with crude prices between $65 and $75 a barrel. The cartel will emphasize compliance with current production quotas in an effort to chip away at massive stockpiles of petroleum products in the word’s two largest oil consumers, the US and China.
HEAT USA price experts reported that yesterday’s price increases on NYMEX resulted in a large increase in retail heating oil prices today. They expect prices to stay about flat until tomorrow, when they will react to the API stockpile data for this week, to be released today at 4:30 pm EDT.
Gold Leads Oil Prices Higher Ahead of OPEC Meeting
At 9:14 am EDT, the price of crude had gained 3.8 percent to reach $70.61 a barrel and the price of heating oil had risen 3.5 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: UP $0.06
Morning projection (for Wednesday’s price per gallon): DOWN $0.02
A sudden jump in gold prices stimulated moderate gains in oil prices this morning as market watchers awaited OPEC’s next meeting in Vienna tomorrow. A weak US dollar helped send the value of gold to over $1,000 an ounce, which stimulated a frenzy of oil buying as a hedge against inflation. The OPEC meeting is expected to have little immediate effect on oil prices, as spokesmen from member nations have clearly indicated that the cartel does not intend to change current output quotas.
HEAT USA price experts reported a moderate-to-high increase in retail heating oil prices over Friday (prices were unchanged yesterday, as NYMEX was closed for the Labor Day holiday). They expect retail prices to stay approximately where they are now until the API releases new inventory data tomorrow afternoon and the EIA releases its data on Thursday morning.
Oil Prices Falling After US Employment Data
At 9:39 am EDT, the price of crude oil had lost 0.1 percent to reach $67.91 a barrel and the price of heating oil had fallen by 0.3 percent.
HEAT USA Price Report
Today’s average retail heating oil price per gallon: DOWN $0.01
Morning projection (for Monday’s price per gallon): NO CHANGE
A government report released this morning showed US unemployment at a 26-year high of 9.7 percent, but also showed that the pace of job losses had slowed with fewer-than-expected 216,000 job cuts in August. The negative data that pointed to continuing recession in the United States, the world’s largest oil consumer, drove down oil prices as hope of demand recovery in the near future were dashed once again. Negative economic news and huge oversupplies of heating oil and other petroleum products in developing nations combined to keep crude prices below $70 for most of the week. If crude closes the day near its current price, it would mark a 6 percent decline in prices for the week, the biggest drop in eight weeks.
HEAT USA price experts reported that their prediction of a small decrease in today’s heating oil prices was accurate, and that they expected prices to stay relatively flat through Monday.
