There is a surplus of heating oil and diesel in the United States that is weighing down prices, according to a recent article by MarketWatch.com.
The article says that crude oil prices fell in response to a report by the U.S. Energy Information Administration (EIA) that distillate stockpiles, which include heating oil, jumped by 5 million barrels last week and gasoline supplies rose by 800,000 barrels. "The surge in distillate stocks reported in this morning's EIA report, and subsequent ... drop in heating-oil futures, undoubtedly added pressure to oil futures and helped turn prices back into negative territory for the session," Tyler Richey, co-editor of the 7:00's Report told MarketWatch.
Oil prices had declined over each of the last three trading sessions, following the Organization of the Petroleum Exporting Countries' decision on Friday to keep producing oil at high levels in the face of a global supply glut, according to MarketWatch.
Heating oil prices slipped in response to the data. Wholesale heating oil for January delivery fell to $1.239 a gallon.
To read the MarketWatch article, click here.