Heating Oil Price Trend for January 7: +1¢
Oil prices rose on Wednesday in spite of an EIA inventory report that showed a surprising increase in crude oil inventories and a small decline in distillate inventories, which include heating oil and diesel. Cold weather had helped to lift oil prices recently, with the expectation that it would boost heating oil demand and cut into fuel inventories. Nevertheless, oil prices were unfazed by the EIA’s data, and some said the real impact of cold weather would be seen in next week’s inventory numbers. Crude and heating oil’s small gains on NYMEX yesterday underscored the limited impact supply and demand can have on oil prices, as expectations of future economic recovery overwhelmed bearish supply data.
Today’s average retail heating oil price in the Northeast is 1 cent higher than Wednesday’s average price.