Heating oil is soaring

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Fraser921
Posts: 3240
Joined: Mon Mar 22, 2021 11:48 am

Heating oil is soaring

Post by Fraser921 »

Which is help supporting WTI today. First blast of cold in New England and people have to fill tanks
dan_s
Posts: 37310
Joined: Fri Apr 23, 2010 8:22 am

Re: Heating oil is soaring

Post by dan_s »

U.S. distillate inventories (primarily diesel and home heat oil) are 13% below the 5-year average AND we use a lot more distillates than we did 5-years ago.
I worked for Hess for 18 years. Each year, lots of people that burn oil for space heating wait until the first cold wave of the winter is on the way before buying their first load of oil. As a result, they pay higher prices than if they filled the tank a few weeks earlier.

Oil-based product inventories are VERY TIGHT in the U.S. and in Europe.
Dan Steffens
Energy Prospectus Group
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