The report below provided by Hedge Solutions highlights some of the factors driving heating oil prices for New Englanders through August 2017.
The US Dollar - WTI Correlation
West Texas Intermediate (WTI) is a grade of crude oil used as a benchmark in oil pricing. There is often a strong negative correlation between the value of the US dollar and oil prices, as oil prices are dollar - denominated. The strength of this correlation can vary over time, however, due to other factors and perhaps market imperfections. The correlation was largely positive (the opposite of the norm) for the first six months of 2017, but has been negative again since late June.
To read the whole article in the latest Energy Procurement Report, just click on the image below to view the whole report full size:
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