Slide 7 of 17
Stocks are normally an important part of East Coast winter distillate supply, since they are the nearest source when anything unexpected occurs, and they supply a significant portion of demand during the peak heating season. Over the last 10 years, stocks have provided about 15% of supply during the peak winter months of January and February. On average, stocks supply the East Coast with about 260 MB/D in January and 280 MB/D in February. Those supplies represent draws of about 8 million barrels in one month.
In addition, East Coast refineries meet about 25% of demand during January and February, and other regions -- mostly the Gulf Coast -- supply 40-50% of the regionís needs.
Imports generally supply about as much as stocks during the peak months, with most of the product coming from Canada, the Virgin Islands and Venezuela. During the peak months, product from more distant sources also helps to supply the region.
Thus, about 60% of the East Coastís supply comes from distant sources, so if cold weather increases demand, re-supply from these distant sources can take several weeks.