Winter Heating Oil Season News

Petroleum prices have drifted down toward $70 a barrel in recent days from a record high last month, as the summer driving season comes to a close. Does this mean crude oil could fall to as low as $60 a barrel? Or is it more likely to reverse course and climb toward $80? The price of gasoline at the pump is largely determined by the price of petroleum in the global market place, and a variety of difficult-to-predict factors, only starting with global demand, influences oil's trading value. U.S. demand for oil often weakens in early autumn as the vacation season ends and the winter heating oil season has yet to begin. But it also is hurricane season, which is a significant wild card.

Oil prices steadied as buyers returned to the market on Friday to take advantage of a five percent slump set off by speculative fund sell-off on Thursday. Brent crude futures in London were trading 18 cents stronger at $21.60 a barrel, clawing back some of the losses sustained in Thursday's dramatic $1.17 fall. The losses were caused by funds selling futures in response to technical indicators, denting OPEC's hopes of keeping prices firm while they hold a tight rein on production. Sentiment has been damaged by poor refinery profit margins in the United States and an expectation among industry watchers that OPEC compliance with output limits will weaken rather than strengthen as time goes on.