The price of home heating oil is in the basement
this week as predictions of mild weather – and mild demand – combined with
large stocks to create the largest price drop in three years.
News services reported that Monday, the price of
home heating oil dropped to $1.21 a gallon at the close of trading.
Recently, market observers have been speaking with
concern about the U.S. supply of distillate fuels – which includes heating oil,
diesel fuel and jet fuel – saying that as the weather turned cold that supplies
already disrupted by hurricanes that battered Gulf of Mexico production
facilities would not be enough.
Truckers and other diesel users would be competing
for the same supply with homeowners in the Northeast, where most home heating
oil is used in the United States.
However, predictions of winter weather began to call
for milder conditions and distillate supplies grew, causing the price to drop
Monday. Media outlets reported it was the largest drop in home heating oil
prices in three years.