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Refineries produce heating oil in the distillate fuel category of petroleum products. Distillates consist of heating oil and diesel gasoline. U.S. refineries supply most of U.S. distillate demand. Imports generally speaking health supplement provides during the winter consequently they are mainly for customers within the Northeast. Distillate products are relocated through the United States by pipelines, tankers (ships), barges, trains, and vehicles.

Winter home heating oil stocks are designed up during summer and fall

Refiners have actually limitations on amount of warming oil they can make to satisfy customer demand during the cold winter home heating period. Refiners increases heating oil production when you look at the cold weather, but that means there is also to make greater quantities of various other petroleum items. If no marketplace is present for larger amounts of various other petroleum products, this not enough need may limit the level of extra home heating oil they create. For that reason, a number of the home heating oil that refiners produce during summer and autumn is stored for delivery in winter season. During the winter, warming oil suppliers make use of these stored inventories to help satisfy demand.

Are you aware?

Refiners may postpone warming oil production for cold temperatures if consumer need is high for a seasonal product like fuel. This delay may cause lower home heating oil stocks at the beginning of the heating season. This scenario took place in September and October 2005 after Hurricane Katrina and Hurricane Rita power down some Gulf Coast refineries. As gasoline costs risen to a lot more than $3.00 per gallon, refiners had a reason to create even more gasoline at any given time once they would typically pay attention to heating oil production.

Imports supplement domestic manufacturing

The United States imports warming oil off their countries to supplement U.S. refinery production and inventories. Many U.S. imports of distillate originate from Canada and Russia consequently they are imported to the East Coast, in which the greater part of U.S. domestic industry home heating oil usage does occur. Normally, East Coast distillate imports are highest during the cold winter months to greatly help satisfy heating oil demand.

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