Posted in: Forecasts,
by Patrick DeHaan on Jan 20, 2010 01:38 PM
With the DOE report coming out one day later than normal, this prediction can't take into consideration how it will alter prices, however, prices should continue to head down across much of the U.S. and Canada.
Since the report tomorrow addresses just the 2nd week of 2010, I expect inventories continue to rise. I'm not expecting the great numbers that we saw the week before- I think the cold weather we saw will impact this report a bit more than others expect. I still believe we'll see inventories of gasoline and crude oil rise, but may see a reduction in distillate fuel inventories. Stay tuned to tomorrow's blog post for a recap of the DOE report and what it means. (READ MORE!)
This weekend, much of the country should see moderating prices, with the national average bound to drop below $2.70 before Monday as a drop in wholesale prices slowly translates into lower retail prices. Average gasoline prices in Canada look likely drop below 100 c/L as well, following the trend seen in the United States.
The stronger U.S. dollar has certainly helped pressure oil prices lower this week- the dollar is at it's strongest level since mid-August of last year. We should also get a boost from the warmer than average temperatures in New England that the Climate Prediction Center is forecasting for the next couple weeks.
Overall, prices will likely end January below where they are now, with February seeing prices relatively stable near $2.68-$2.79, and March prices likely climbing to $2.76-$2.89. If you're on the West Coast, your prices will obviously be higher, and areas of the Midwest and Gulf will see prices below these numbers.