Uh huh..... Oil Prices Fall On Rising Crude Inventories | OilPrice.com The Energy Information Administration rattled oil bulls by reporting a build of 1.9 million barrels in U.S. crude oil inventories for the week to February 2. The report comes a day after the release of the latest Short-Term Energy Outlook that saw the EIA projecting local oil production will hit the 11-million-bpd mark late this year, with the average for the year seen at 10.6 million bpd. Prices felt the blow of these revised projections and will likely continue to feel it for a few more days. At the time of writing, West Texas Intermediate traded at US$63.84 per barrel, with Brent at US$67.55 a barrel.
It works that way by design. While this is an opinion article, it highlights some of the challenges associated with Nat Gas in New England. Cold winters are testing the limits of US energy grid While the presence of natural gas in New England’s electricity fuel mix has grown from 18 percent in 2000 to 45 percent in 2017 to an anticipated 56 percent in 2025, New England’s ability to receive natural gas has not kept pace.
Here’s an interesting article relevant to the current discussion. Two million barrels of HHO/ULSD burned to produce electricity in New England over a 15 day period.. Massive oil burn during cold snap a 'disaster,' says state energy and environment secretary
So, since winter effectively ended for most of the population of New England back in January, shouldn't prices start falling off a cliff?
Not until the oil companies sell off the inventory that they paid a high price for during the market run up. The spot price for heating oil has dropped almost $0.30in 3 weeks. But with warmer temps, the delivery companies will take longer to get rid of inventory. Once one company cracks on the price, others start to come down.. question is who will move first... Same with the gas stations...
This always made me mad; we would have our milk hauled off our farm, dragged down to a creamery, sold off...and then 2 weeks after it is completely consumed by the national food chain, someone would decide what it was worth and graciously send us a check. Of course by then what exactly could we say..."no, we do not like the price?" A person would think with the US Government being the biggest purchaser of fuel, they might have a bit more say in how much a price of fuel goes for instead of speculators.
