Oil and Gas News – ENERGY MATTERS: End-Year Data Show Tight US Oil Market
Notwithstanding a dip in jet fuel demand, consumption of core petroleum products – gasoline, heating oil/diesel, jet fuel and residual fuel – rose to its highest-ever level, as slack demand for lesser products diminished the overall strength. Market players were encouraged to draw down crude oil stocks in late July, when the near-term supply worries pushed the price of front-month crude futures contracts above forward contracts. In the main heating oil consumption regions, New England and the Mid-Atlantic states, total distillate stocks are about 25 million barrels below a year ago. Rather than purchasing oil in the open market, the DOE is allowing companies which produce oil under federal leases to shift some crude oil into the reserve as royalty payment instead of cash. read more
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