Fuel Trends

As tensions rose in Iran and the government reported strong retail sales, oil rose to $99 a barrel today. Oil prices rose quickly after the stock market opened, a rally fueled by the report of strong consumer spending for the sixth straight month and the possible effect on oil supply if the unrest in Iran escalates.

With growing concerns over the European debt crisis, oil prices had dropped to under $96 a barrel on Monday. The euro had continued to fall amidst fears the eurozone treaty doesn't go far enough, which in turn lifted the dollar. Economists have warned that the eurozone balanced treaty may prevent nations from building sizable debt, but will do little to reduce the current massive debt.

Domestically, oil demand had fallen by 5.6% compared to a year ago. Wholesale gasoline demand had dropped by 4.5%. Meanwhile heating oil futures rose by four cents and gasoline futures increased by 5.8 cents.