Heating Oil Price Trend for March 10: -2¢
(image: cbc.ca and Nicholas Whitaker via heatingoil.com)
The dollar’s gains against the euro paired with expectations that oil inventories would rise to push down oil prices on Tuesday. A strong dollar makes commodities priced in dollars, like crude oil and heating oil, more expensive for traders holding other currencies. The API’s inventory data came out after trading closed yesterday and showed that supplies of crude oil gained a whopping 6.5 million barrels. The EIA report, due out at 10:30 am, is likely to revise that figure considerably, but analysts still expect a build in crude inventories of roughly 2 million barrels. Distillates, which include heating oil and diesel, likely dropped by 1 million barrels, but its effect on oil prices could be subdued since the heating season is drawing to a close.
Today’s average retail heating oil price in the Northeast is 2 cents lower than Tuesday’s average price.
