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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