|SThe demand estimates behind the prior
distillate inventory picture also did not
include any unusual fuel switching, which may occur.
|SThe loss of natural gas production on the Gulf
Coast is affecting prices relative to petroleum products. With both the need for portable generators
running off of diesel in the areas affected by power outages and the reduced
natural gas volumes and price differential encouraging early fuel switching
in the Northeast, we could see higher distillate demand than assumed.
|SThus, we still are in a precarious position
for winter heating oil. Even though
refineries are recovering even as we speak, the story is far from over for
heating oil supplies.