Spot Distillate & Crude Oil Prices(Prices thru Jan 31, 2000)

Notes:

• Retail distillate prices follow the spot distillate markets, and crude oil prices have been the main driver behind distillate spot price increases until recently. Crude oil rose about 36 cents per gallon from its low point in mid February 1999 to the middle of January 2000.

• Over this same time period, New York Harbor spot heating oil had risen about 42 cents per gallon, reflecting both the crude price rise and a return to a more usual seasonal spread over the price of crude oil.

• The week ending January 21, heating oil spot prices in the Northeast spiked dramatically to record levels, closing on Friday at $1.26 per gallon -- up 50 cents from the prior week. Gulf Coast prices were not spiking, but were probably pulled slightly higher as the New York Harbor market began to pull product from other areas. They closed at 83 cents per gallon on January 21, an increase of 11 cents from the prior Friday. Crude oil had risen about 4 cents from the prior week.

• New York Harbor spot heating oil prices peaked on Tuesday, January 25 at almost $1.36 per gallon before a brief weather respite and signs of cargoes coming the East Coast encouraged buyers to begin to relax. By January 31, spot heating oil prices had fallen to 82 cents. It is still a little early to determine if this signals the end of the crisis.

• What happened the week ending January 21?