Heating Oil Price Trend for February 1: -1¢
(image: BenjaminJoel via flickr.com and life.com)
Oil prices fell on Friday despite the Commerce Department’s report that GDP had grown by 5.7 percent in the fourth quarter. Many analysts believed that GDP growth had been inflated by businesses restocking inventories that had been allowed to fall during the recession, and discounted Commerce’s figures. Demand for oil remained weak, shown by collapsing profits in the refining sector—Chevron’s refineries and filling stations lost an average of $278,000 an hour in the fourth quarter. A stronger dollar added further pressure on the price of crude and heating oil, since a strong dollar reduces the appeal of commodities as hedges against inflation.
Today’s average retail heating oil price in the Northeast is 1 cent lower than Friday’s average price.
