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Help is on the way, Reuters

You are here: Home / Uncategorized / Help is on the way, Reuters

March 1, 2016 by Jim Colburn Leave a Comment

A fading El Niño offers hope for heating oil demand, next year:

“So far this winter, heating demand across the United States has been 17 percent below the long-term average, according to the National Oceanic and Atmospheric Administration (tmsnrt.rs/1n1dTgx).

Coupled with the slowdown in freight movements, lower heating demand has sent U.S. consumption of distillate fuel oil tumbling to its lowest level in more than a decade.”

Here is the link: http://www.reuters.com/article/us-usa-distillate-kemp-idUSKCN0W217K

“However, if the U.S. and global economies can avoid a recession, the weather should at least be more favorable for distillate consumption in 2016 than it was in 2015…

The good news for refiners is that El Nino is a cyclical phenomenon (“El Nino 101: what everyone needs to know”, Reuters, Feb 2016).

Other things being equal, next winter should see higher heating demand across the United States and greater heating oil consumption.

The current El Nino is already past its peak and beginning to fade, according to weekly observations published by NOAA (tmsnrt.rs/1n1dOcM).”

I guess it’s like rooting for the Mets….

 

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Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

Our associates bring decades of experience to the table, as they seek to help our clients understand the markets. CRG will distill the myriad of pricing variables mentioned above into coherent research that is to-the-point and tailored to a clients hedging or pricing needs. In addition, CRG is available for consulting assignments and speaking engagements. CRG does not manage money or trade for itself.

 


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