Heating Oil Price Trend for July 30: +4¢

Posted by Michael Hoven on July 30, 2010 at 8:46 am

Heating oil prices jumped as the value of the dollar plunged. (image: Nicholas Whitaker for HeatingOil.com)

The dollar weakened on Thursday, reaching its lowest point against the euro in 12 weeks and losing ground relative to most other currencies as well. The weak US currency boosted oil prices, since it made crude oil futures and heating oil futures—both of which are priced in US dollars—cheaper and more attractive to traders who hold other currencies. The impact of currency prices overwhelmed the affect of some negative economic news and Wednesday’s report of a massive increase in crude oil inventories. While oil prices have defied bleak economic news on Wednesday and Thursday, Friday’s report that US GDP grew at a slower rate than expected has led oil prices to fall sharply in early trading, and could produce lower retail heating oil prices over the weekend.

Today’s average retail heating oil price in the Northeast is 4 cents higher than Thursday’s average price.