Heating Oil Price Trend for September 2: +4¢
Fleeting positive news on the economy led to big gains on US stock markets, which helped lift oil prices on Wednesday. (images: abcnews.com and Nicholas Whitaker for HeatingOil.com)
A brief spate of economic optimism brought major gains to US stock markets and oil prices yesterday. Increases in Chinese and US manufacturing activity bolstered investors’ hopes that global oil demand would soon improve, and a weak US dollar made oil a more attractive investment to those holding foreign currencies. Resulting jumps in crude and heating oil prices at the NYMEX brought a four-cent increase in retail heating oil prices that carried over into today. Wednesday also brought the release of the EIA’s weekly petroleum inventory reports, which showed modest decreases in gasoline and distillate (a category that includes heating oil) supplies, but a sizable increase in crude supplies tied to a slowdown in refining activity. Supplies of petroleum products regained the market’s focus on Thursday morning, sending prices downward on concerns over future demand and general economic uncertainty.
Today’s average retail heating oil prices in the Northeast is 4 cents higher than Wednesday’s average price.
Heating Oil Price Trend for September 1: -4¢
August came to a close with NYMEX oil prices much lower than where they began. (images: lifebeginsat30.com, Nichola Whitaker for HeatingOil.com)
Oil prices ended the month of August with a whimper on Tuesday, sinking under the weight of huge supplies of petroleum products and a weak US economy. The price of crude dropped by more than 10 percent over last month, reversing the upward trend seen in June and July. With the summer driving season over and US consumers staying frugal as the economy continues to struggle, demand for gasoline, heating oil and other fuels is as uncertain as ever. That uncertainty combined with petroleum product inventories at two-decade highs (supported by an API inventory report released Tuesday that showed more increases), the short- and medium-term oil market belongs to the bears. Yesterday’s big price declines led to a significant decrease in retail heating oil prices this morning. Today’s oil prices are on the rise at the NYMEX, however, bolstered by news from China that manufacturing activity increased last month and as sinking US dollar.
Today’s average retail heating oil price in the Northeast is 4 cents lower than Tuesday’s average price.
Heating Oil Price Trend for August 31: -1¢
Full petroleum storage tanks around the country are keeping oil prices down at the NYMEX. (images: townofeagle.org and Nicholas Whitaker for HeatingOil.com)
Oil prices dipped at the NYMEX on Monday as huge supplies of petroleum products and the struggling US economy regained the focus of investors. Falling stock market indexes showed a lack of confidence in the economic recovery that once again underscored weak demand for fossil fuels. Total petroleum inventories are at 20-year highs, and this week’s reports are expected to show more stockpile increases. Sagging market prices brought a slight decrease in retail heating oil prices today. This morning, oil prices continued to fall, and the price of crude is on its way to a 7 percent drop during August, after rising in June and July. This morning, data from Japan showed a notable increase in oil product sales last month, growth in manufacturing activity was the slowest in over a year during August. If this morning’s downward trend continues and is supported by data showing another increase in petroleum stockpiles by the American Petroleum Institute this afternoon, retail heating oil prices will likely drop significantly on Wednesday.
Today’s average retail heating oil price in the Northeast is 1 cent lower than Monday’s average price.
Heating Oil Price Trend for August 30: +3¢
Federal Reserve Chairman Ben Bernanke's reassuring comments boosted oil prices on Friday at the NYMEX. (images: irishtimes.com, Nicholas Whitaker for HeatingOil.com)
Fed Chairman Ben Bernanke helped drive up oil prices at the NYMEX on Friday by injecting some semblance of confidence in the US economy with assurances that the Federal Reserve will take action to prevent a double-dip recession. Hurricanes threatening to disrupt refinery activity along the Gulf Coast also lent support to oil prices late last week. But both of those factors appear to be distant memories this morning, as the focus of oil markets has returned to huge supplies of petroleum products and weak demand in the US. CNBC reported that data released last week also showed that speculators significantly reduced bets that oil prices would rise, showing a lack of confidence that prices would move higher over the medium and long term. Friday’s uptick in crude and heating oil prices at the NYMEX brought moderately higher retail prices today, but downward trends on the market will likely bring lower retail prices on Tuesday.
Today’s average retail heating oil price in the Northeast is 3 cents higher than Friday’s average price.
Heating Oil Price Trend for August 27: +5¢
A modest decline in new unemployment claims helped oil prices post big gains at the NYMEX on Thrusday. (images: techi.com, Nicholas Whitaker for HeatingOil.com)
Better-than-expected data on US unemployment combined with a weak dollar to drive up oil prices at the NYMEX on Thursday, bringing a major increase in retail heating oil prices on Friday. Initial unemployment claims declined last week, setting off a trend of slight optimism that the economic recovery in the US could pick up and stimulate oil demand. On Friday morning, oil prices continued to move upward at the NYMEX, supported by news that second quarter economic growth slowed less than expected, which also set off a modest stock market rally. The most eagerly anticipated news of the day will come out of Jackson Hole, Wyoming, where Federal Reserve chairman Ben Bernanke will speak on the state of the economy. His remarks will give investors an idea of what measures the Fed is willing to take to stave off a double-dip recession. A pledge of continuing minuscule interest rates and other decisive action would likely bring about an upward surge in oil prices.
Today’s average retail heating oil price in the Northeast is 5 cents higher per gallon than Thursday’s average price.
Heating Oil Price Trend for August 26: +4¢
Declines in the dollar helped lift crude and heating oil prices on Wednesday, brining higher retail prices on Thursday. (images: slate.com, Nicholas Whitaker for HeatingOil.com)
Oil prices continued their upswing on Thursday, supported by a retreating dollar and rising stock values in the US. Fundamental forces, on the other hand, continue to offer little support to prices as sluggish economic growth has kept demand low and supplies full to almost overflowing for months; Wednesday’s petroleum inventory report from the federal Energy Information Administration showed increases in inventories of all three categories of petroleum products. That fact points to recent gains by crude, heating oil and gasoline on the commodities market being short-lived. Beginning on Wednesday and continuing through Thursday morning however, prices have been rising sharply and lifting retail heating oil prices along with them in what some analysts are calling an upside correction. A new jobs report due out on Thursday, if it shows another substantial increase in unemployment claims, could deflate the mini-rally and send prices falling on Friday.
Today’s average retail heating oil price in the Northeast is 4 cents higher per gallon than Thursday’s average price.
Heating Oil Price Trend for August 25: -2¢
A reported decrease in the amount of crude oil in storage in the US gave heating oil prices a small boost at the NYMEX on Wednesday morning. (images: Enbridge Energy Company via nyt.com, Nicholas Whitaker for HeatingOil.com)
Crude and heating oil prices fell for the fifth consecutive day on Tuesday, driven down by new signs that the US economy’s recovery is stagnating and the risk of a double-dip recession is high. The biggest news came from the Chicago Federal Reserve, which specifically stated that a double-dip recession is more likely now than it was six months ago. Tuesday’s price declines brought moderately lower retail heating oil prices on Wednesday morning. Today at the NYMEX, an inventory report from the American Petroleum Institute (API) that showed a decline in crude inventories last week gave a modest boost to oil prices, but data showing durable goods sales rose less than expected last month tempered gains. Ahead of the Energy Information Administration’s (EIA) report on petroleum inventories, to be released at 10:30 am Eastern Time, the price of crude was slightly lower than its open and the price of heating oil slightly higher. Both will likely post significant gains if the EIA report confirms the API’s news of a decline in crude oil inventories.
Today’s average retail heating oil price is 2 cents lower per gallon than Tuesday’s price.
Heating Oil Price Trend for August 24: -1¢
Americans' scaling back on driving this summer led to a steep drop in gasoline prices on the NYMEX on Monday, which helped bring down heating oil prices. (images: npacc.net and Nicholas Whitaker for HeatingOil.com)
On Monday, oil prices picked up where they left off last week and continued to drop, closing lower for the fourth consecutive day. A strong dollar, declining stock markets, and news that Tropical Storm Danielle would not disrupt refining operations along the Gulf Coast all contributed to bringing down crude and heating oil prices. Monday also saw the price of gasoline futures sinking farther and faster than crude and heating oil, which also helped bring them lower. Like heating oil, gasoline is a product of crude oil, and so usually follows crude prices, but yesterday gasoline prices dropped sharply at the NYMEX as the summer driving season began to wind down and demand remained weak. In addition to helping push heating oil prices down, falling gasoline prices will likely translate into lower prices at the pump in the next few weeks. Tuesday morning, crude and heating oil prices continued to slide on the commodities market in advance of this week’s petroleum inventory report from the American Petroleum Institute.
Today’s average retail heating oil price in the Northeast is 1 cent lower per gallon than Monday’s average price.
Heating Oil Price Trend for August 23: -2¢
A falling US dollar is the main cause of some modest gains in crude and heating oil prices on NYMEX this morning, as it makes oil a more valuable investment for traders buying with foreign currencies. (images: Daryl Cagle for Slate.com via philsbackupsite.wordpress.com and Nicholas Whitaker for HeatingOil.com)
The downbeat economic news of last week brought significant decreases in crude and heating oil prices at the NYMEX on Friday. The report of an uptick in new unemployment claims that came out on Thursday was the most influential of several new data that emerged during the week and further illustrated the sluggishness of economic recovery in the US. The news brought retail heating oil prices a couple of pennies lower on Monday morning. At the NYMEX this morning, crude and heating oil prices are rising gradually, supported by a weak US dollar and the possibility that tropical storm Danielle could develop into a hurricane and disrupt oil industry activities on the Gulf Coast. However, most experts say that the storm will veer away from the US coast as it moves north through the Gulf of Mexico. Today also marks the first day the October crude oil contract assumes the front month position.
Today’s average retail heating oil price in the Northeast is 2 cents lower per gallon than Friday’s average price.
Heating Oil Price Trend for August 20: -2¢
More than 500,000 Americans filed for new unemployment benefits last week, and the news led oil prices lower on Thursday at the NYMEX. (images: AP via newshopper.sulekha.com and Nicholas Whitaker for HeatingOil.com)
The big financial news on Thursday was an employment report that showed over half a million Americans applying for new jobless benefits last week. The report dealt yet another blow to hopes of economic recovery gaining momentum in the US and deflated oil traders’ optimism that oil demand will begin to climb. Total oil supplies in the US, the world’s leading consumer, are at historically high levels, and signs that those supplies will be put into use are few and far between. The current high-supply, low-demand situation combined with continued economic uncertainty in the US and many other developed nations made for another day of declining oil prices at the NYMEX on Thursday. Those declines brought moderate decreases in today’s retail heating oil prices. On Friday morning, crude and heating oil prices continued along a downward trajectory at the NYMEX.
Today’s average retail heating oil price in the Northeast is 2 cents lower per gallon than Thursday’s average price.
Heating Oil Price Trend for August 19: No Change
Mixed inventory numbers from the EIA kept oil prices flat at the NYMEX on Wednesday. (image: sais-jhu.edu)
A mixed inventory report from the Department of Energy’s Energy Information Administration (EIA) released on Wednesday morning brought little change to crude and heating oil prices at the NYMEX yesterday. The report showed modest decreases in crude and gasoline stockpiles and a sizable increase in distillate inventories, which include heating oil. The market prices of crude and heating oil both ended the day slightly below their opening positions, and the result was flat retail heating oil prices for Thursday. Oil prices rose in early trading on Thursday morning, boosted by expectations of strong demand from China. By 10 am Eastern Time, however, both crude and heating oil prices had turned slightly below their opening prices.
Today’s average retail heating oil price in the Northeast is unchanged from Wednesday’s price.
Heating Oil Price Trend for August 18: No Change
A weak dollar and surging stock markets lifted crude and heating oil prices at the NYMEX on Tuesday. (image: Nicholas Whitaker for HeatingOil.com)
On Tuesday, a stock market rally and a weak US dollar brought on a sharp increase in crude and heating oil prices on the NYMEX that produced a four-cent increase in retail heating oil prices around noon. But a weekly inventory report released by the American Petroleum Institute (API) later in the day showed a surprising build in all three categories of petroleum products (crude, gasoline, and distillates, which include heating oil), each by several million barrels. This news caused a rapid market turnaround on Wednesday morning that could lead to substantial decreases in crude and heating oil prices if the inventory report released by the Energy Information Administration (EIA) confirms the data in the API report. Inventory increases represent a lack of consumption of petroleum that can be traced to a US economy that is still hurting from the worldwide recession that began two years ago. If the EIA report corroborates the findings in the API report, expect crude and heating oil prices to drop sharply through the end of the week.
Today’s average retail heating oil prices in the Northeast is unchanged from Tuesday afternoon’s price.
Heating Oil Price Trend for August 17: +0¢
Oil traders at the NYMEX had a relatively quiet day on Monday, which made for flat oil prices. (images: Nicholas Whitaker for HeatingOil.com)
A shaky economic recovery in the US continued to rattle traders on Monday, making for a quiet day on the oil market at the NYMEX. Bearish economic news from Japan and a bleak job market continued to temper expectations of an uptick in oil demand in US and other parts of the developed world. Limited oil trading led to a second straight day of basically flat crude and heating oil prices, and brought no significant changes to retail heating oil prices today. This morning, oil prices are breaking upward, supported by a weakening dollar and gains on US stock markets. If those increases in crude and heating oil prices hold up, they could bring small increases in retail heating oil prices on Wednesday.
Today’s average retail heating oil price per gallon in the Northeast is unchanged from Monday’s average price.
Heating Oil Price Trend for August 16: +0¢
Wary investors at the NYMEX kept the prices of crude and heating oil mostly flat on Friday. (image: Nicholas Whitaker for HeatingOil.com)
Oil prices failed to turn around on Friday after three straight days of losses precipitated by a parade of negative economic news last week. However, Friday’s losses to both crude and heating oil prices were small, with both commodities ending the trading day near their opening prices. As a result, today’s retail heating oil prices are largely unchanged from Friday. On the markets this morning, both crude and heating oil appear to be stalled near their closing positions from last week. The price of crude is hovering around the $75-per-barrel mark, supported by a weakening US dollar, but gains will likely be limited as the economic outlook in the US and elsewhere continues to look gloomy. Today, reports of a slowdown in Japan’s economic growth added downward pressure on oil prices, as Japan is the world’s third-largest oil consumer.
Today’s average retail heating oil price per gallon is unchanged from Friday’s average price.
Heating Oil Price Trend for August 13: -7¢
Unemployment was one factor that contributed to significant declines in oil prices on Thursday. (images: marketmixup.com, Nicholas Whiatker for HeatingOil.com)
Oil prices continued their slide on Thursday with the steepest declines of the week. A storm of bearish news, including an increase in US unemployment claims, swollen petroleum inventories, and slowing economic growth in oil-gulping China came to a head on Thursday to complete a three-day drop in crude and heating oil prices. Friday morning is seeing a modest turnaround in oil prices, as prices rose at the NYMEX at the open of trading, pared gains, and then rose again. The modest price increases are being driven primarily by a new economic report that showed US retail sales increased for the first time in three months in July. The positive economic sign offered a glimmer of hope that the American economy’s recovery will begin to pick up soon and drive higher oil demand.
Today’s average retail heating oil price per gallon is 7 cents lower than Thursday’s average price.
Heating Oil Price Trend for August 12: -5¢
Fewer Amrericans took to the road this summer, which increased supplies of gasoline and helped drive down crude and heating oil prices on the NYMEX on Wednesday. (images: jmooneyham.com and Nicholas Whitaker for HeatingOil.com)
Huge increases in distillate (a category of petroleum fuels that includes heating oil) stockpiles and a sinking stock market brought about a drastic reduction in oil prices on Wednesday. The declines in crude and heating oil prices on NYMEX made for a significant decrease in retail heating oil prices throughout the Northeast this morning. The increase in distillate and gasoline stockpiles announced yesterday by the Energy Information Administration signifies that US fuel demand is still sluggish (running counter to expectations of a spike in gasoline demand connected to the summer driving season) and that the economy is still mired in a slow recovery. Demand has been so low that the recent stockpile increases put total gasoline stockpiles at their highest level in 10 years and total distillate stockpiles at their highest level since January of 1983, according to Bloomberg News. Oil prices continued their steep decline on Thursday morning as a report showed an increase in unemployment claims last week.
Today’s average retail heating oil price per gallon is 5 cents lower than Wednesday’s average price.
Heating Oil Price for August 11: -3¢
Unstable global oil demand and uncertainties about economic recovery drove down crude and heating oil prices at the NYMEX on Tuesday. (image: Nicholas Whitaker for HeatingOIl.com)
Tuesday’s announcement by the Federal Reserve that it would keep interest rates near zero and inject more cash into the national economy failed to outweigh negative factors that dragged down oil prices on the NYMEX. News of a substantial reduction in China’s oil imports last month and the Fed’s assessment of the US economic recovery moving slower than expected rattled expectations of growing global oil demand and sent crude and heating oil prices lower. Not even declines in the value of the US dollar brought on by the Fed’s announcement were enough to lift oil prices above their opening prices. This morning, oil prices are continuing to fall on a new report from the International Energy Agency that includes a warning that sluggish economies in the developed world could cancel out growth in global oil demand.
Today’s average retail heating oil price per gallon is 3 cents lower than Tuesday’s average price.
Heating Oil Price Trend for August 10: +1¢
Short-term gains on US stock markets and a weak dollar drove up oil prices at the NYMEX on Monday. (image: Nicholas Whitaker for HeatingOil.com)
A weak US dollar and rising stock markets brought modest increases in crude and heating oil prices on the NYMEX on Monday and led to a small uptick in retail heating oil prices today. Despite signs that the American economy’s recovery is slowing down that came out of a negative jobs report released on Friday, rising stock market indexes on Monday gave oil traders some optimism while a weakening dollar made oil a more attractive target for foreign investors.
Today’s big news will be the statement from the US Federal Reserve, which is meeting in Washington to consider next steps toward supporting the troubled economy. A finding released yesterday by the Federal Reserve of San Francisco found a “significant” chance of another US recession in the next two years—and found a “double-dip” recession is more likely than economic growth, CNBC reported. That gloomy assessment is helping to drive down oil prices this morning as the markets await the Fed’s announcement this afternoon.
Today’s average retail heating oil price in the Northeast is 1 cent higher than Monday’s average price.
Heating Oil Price Trend for August 9: -4¢
Oil traders at the NYMEX reacted bearishly to Friday's jobs report, bringing lower retail heating oil prices on Monday. (images: Nicholas Whitaker for HeatingOil.com)
July unemployment data from the Department of Labor that on Friday showed the second straight month of negative job growth kept oil prices down on the final trading day of last week. The jobs report sent crude and heating oil prices downward after an otherwise upbeat week of trading, but the price of crude remained above the psychological benchmark of $80 per barrel. The loss of 131,000 jobs in July underscored the slow recovery of the US economy and intensified fears of a double-dip recession, both of which contributed to oil traders’ pessimism on the state of the US economy and brought moderate-to-large decreases in oil prices on the NYMEX on Friday. The result is significantly lower retail heating oil prices today, though market prices are currently on the rebound.
Today’s average retail heating oil price in the Northeast is 4 cents lower than Friday’s average price.
Heating Oil Price Trend for August 6: -1¢
Another increase in jobless claims led crude and heating oil prices down at the NYMEX on Thursday. (image: Nicholas Whitaker for HeatingOil.com)
The ripple effect from Wednesday’s bearish inventory reports from the EIA combined with news of a jump in US unemployment claims weighed on oil prices throughout the day on Thursday. Prices are still dropping this morning, as the unemployment news renewed market pessimism about the state of the US economy and its prospects for recovery. Although the jobs report did contain some positive news, such as in increase in average work week hours and hourly wages, they failed to boost oil prices or stock markets.
Today’s average retail heating oil price is 1 cent lower per gallon than Thursday’s average price.
