Mainers Struggle with Cold
Republican senator for Maine Olympia Snowe is trying to get traction for a bill that would fully fund federal heat aid for low income families and pensioners this winter. (image: tvtechnology.com)
A bill that aims to fully fund the federal heat aid scheme to help vulnerable families this winter has stalled amid bickering in Washington, seacoastline.com reports.
Just before Christmas the government announced the Low Income Home Energy Assistance Program (LIHEAP) would be slashed from nearly $5 billion to $3.5 billion in its drive to reduce the spiralling federal deficit. A record 8.9 million households received LIHEAP heating assistance last year – up 54 percent from 2008 – and the number of recipients is tipped to rise this fiscal year as oil costs soar and the recession bites.
Three New England senators took a bill to Congress last month trying to stave off the LIHEAP cuts to protect vulnerable low-income families and pensioners who will otherwise have to choose between food and staying warm.
State agencies that distribute the money to needy recipients are already being forced to tighten criteria and reduce payouts, and firsthand stories of people struggling with rising winter heating bills are now beginning to surface.
Sen. Olympia Snowe, R-Maine, said Wednesday “the perfect storm” of rising oil prices and falling federal heating assistance was hitting Maine residents hard. The senator was visiting community action corporations throughout Maine to investigate the impact of reduced LIHEAP funding. She labelled the cuts “draconian” and said the remaining money was not enough to help poor Mainers and vulnerable citizens in cold-weather states, particularly in the Northeast, get through winter.
“There really wasn’t much of a tussle between the House and the Senate about [the funding cuts]. That’s a rare exception.”
But the bill to fully fund LIHEAP, which she jointly sponsored with Bernie Sanders of Vermont and Jack Reed of Rhode Island, had stalled in Congress and was getting little traction.
“It’s a tough battle. We had urged the majority leader in the Senate (Sen. Harry Reid) to allow time for debate on our measure, but we haven’t gotten it thus far,” she said. “But we’re not giving up. We’re going to continue to drive it through the next funding process.”
Stories she was hearing from around the state were heartbreaking. She cited the case of a young couple with three young children. The father lost his job and the mother was training to work in the health sector. They had been unable to buy oil, so were warming their home with space heaters.
“Their electric bill is out of sight,” Snowe said. “They’re doing everything right, but they can’t even find part-time jobs in this very difficult economy.”
In Maine, the cost of heating oil was now between $3.70 and $4 a gallon as world oil prices soar on global supply fears because of Iranian threats to close a key oil shipping route. Snowe said heat aid funding was “desperately needed.”
She hoped to build a coalition of senators with similar stories from their constituents in other states to renew traction for the LIHEAP funding bill.
“It gets back to the government’s obligation,” she said.
Heating Oil Price Trend for September 2: -3¢
Oil rigs in the Gulf of Mexico, where drilling operators are poised to shutdown operations even further to prevent damage or loss from two looming storms. (image: latimesblogs.latimes.com and Nicholas Whitaker for HeatingOil.com)
A strengthening storm in the Gulf of Mexico overwhelmed positive U.S. employment reports, sending oil prices in different directions on Thursday. Heating oil prices lost three cents while crude climbed 12 cents to finish at $88.93 a barrel on the NYMEX.
The National Hurricane Center has been keeping an eye on a “tropical wave” they reported had only a 30% chance of developing into a full-blown hurricane. However, the most recent update shows there’s now an 80% chance the storm will strengthen to hurricane status within the next two days. September is the peak month for hurricane activity.
To prepare for the worst, seven oil companies have already evacuated nine platforms in the Gulf of Mexico, shutting down about 80,000 barrels a day of production. The Gulf is such a hotbed of oil drilling, that figure only accounts for about 5.7% of output from the region. Not too far from the Gulf, Hurricane Katia is also picking up momentum as it moves east along Puerto Rico.
In economic influences, the Labor Department reported new claims for unemployment benefits dropped by 12,000 last week, a potential sign of U.S. recovery. And, the Institute for Supply Management announced its manufacturing purchasing manager’s index showed slightly expanding activity in July. However, Labor officials also recorded a 0.7% decline in worker productivity and an increase in national labor costs. More definitive market action could come on Labor Day when non-farm payroll reports are released – economists expect an increase of 80,000 jobs.
The average retail heating oil price in the Northeast is three cents lower than Thursday’s average price.
Heating Oil Price Trend for August 29: +3¢
Refinery shutdowns along the East Coast boosted gasoline prices as well as heating oil prices as residents scrambled to stock up and prepare for the storm. (image: miamiherald.com and Nicholas Whitaker for HeatingOil.com)
Oil prices edged slightly higher on Friday as traders considered the near-future outlook for the U.S. economy and Hurricane Irene’s potential impact on refineries and other domestic oil infrastructure. Heating oil prices inched up three cents and crude gained seven cents to finish at $85.37 a barrel on the New York Mercantile Exchange.
Prices jumped last week on optimism that Federal Reserve Chairman Ben Bernanke would announce a new round of economic stimulus measures. However, in a speech on Friday Bernanke said the Fed has no such plans at this time. The announcement caused some confusion since many believe now would be a pertinent time for further bailout planning. Strategists have been torn for some time about whether or not the U.S. economy is slowly recovering or headed for a double-dip recession. Traders follow economic trends of large oil consumers like the U.S., China, and Europe because economic health is tightly tied to oil demand levels, a strong factor in determining pricing.
Fears of damage to oil infrastructure from Hurricane Irene pushed prices up on Friday, and many refineries shut down all operations for the weekend and possibly longer. The main facilities of refineries are huge steel and concrete structures, designed to withstand strong winds and earthquakes – however, pipelines, power lines and cooling towers are more vulnerable. After a full shutdown, refineries typically need several days or even weeks to completely restart operations.
The average retail heating oil price in the Northeast is three cents higher than Friday’s average price.
Heating Oil Price Trend for August 26: +3¢
Hurricane Irene has already wreaked havoc in the Caribbean, killing at least one Puerto Rican woman. Predicted to soon strengthen to a Category 4, it’s the first major hurricane in over seven years to hit the East Coast. (image: msnbc.msn.com and Nicholas Whitaker for HeatingOil.com)
Oil prices climbed on the back of spiking gasoline futures on Thursday as analysts expressed fear Hurricane Irene could throw a wrench into refinery production and supplies along the East Coast. Heating oil prices gained three cents and crude crawled 14 cents higher to finish at $85.30 a barrel on the NYMEX.
A strong dollar pushed oil prices down early in the day, but they gradually rose as strategists focused on updates from the National Hurricane Center detailing the storm’s path from Florida up the coastline. Smaller islands, including the Outer Banks, are being evacuated and New York City is expecting a direct hit late Sunday evening. According to the federal Energy Information Administration, approximately 9% of our country’s operable oil refining capacity lies along the East Coast. That’s around 1.6 million barrels worth, not to mention infrastructure. Damage or loss of power to pipelines, refineries or vessels would be costly, likely pushing prices up across the board.
U.S. refineries have increased operations to a four-year high, boosting trader confidence. However, one Sunoco processing facility in Philadelphia caught fire, taking its 335,000 daily barrels out of play.
In other market influences, traders are awaiting a speech from Federal Reserve Chairman Ben Bernanke due to be delivered in Wyoming on Friday. Hopes he could announce another round of stimulus measures already pushed oil prices upwards once this week.
The average retail heating oil price in the Northeast is three cents higher than Thursday’s average price.
After the Blizzard: Clearing the Way for Safe and On-Time Heating Oil Deliveries
A clearly visible and accessible fill pipe is essential to safe and on-time heating oil deliveries in snowy conditions. (image: Rippie: Contra Censura! via flickr.com)
Now that the snow has stopped falling in the Northeast, residents digging out walkways and driveways should be sure to keep heating oil deliveries in mind as they shovel snow. Heavy snow not only makes moving through sidewalks and front yards more difficult, but also covers up heating oil fill pipes, which can result in unsafe conditions and missed heating oil deliveries.
Heating oil truck drivers must consider safety when making attempting a delivery, and hidden and/or inaccessible fill pipes pose a danger of driver injury as well as heating oil spills. Heating oil delivery drivers struggling through deep snow while they pull a heavy hose away from their trucks could easily fall and hurt themselves, and a hose that has to bend around obstacles to reach a fill pipe is more likely to leak. For those reasons, determined snow-shovelers should clear plenty of room around their heating oil fill pipes and make sure there is a clear path from the street or driveway to the fill pipe. Drivers who encounter blocked pipes and walkways will often skip the delivery entirely to avoid taking on the risks of injuries and heating oil spills.
Heating oil supply agreements between dealers and consumers involve both parties taking on certain responsibilities. Dealers agree to deliver oil in a timely fashion according to the parameters set out in oil purchase and heating system service contracts. Customers agree to make deliveries safe and convenient for truck drivers by keeping the space they need to do their job visible and accessible.
Heating oil users must do their part to keep deliveries on-time and safe: clear snow away from your heating oil fill pipe and carve a clear path to the pipe from the street or driveway. If your fill pipe is difficult to see under snow, consider hanging a sign or a colorful piece of cloth or ribbon nearby to ensure the driver can see it clearly from the heating oil truck.
Happy shoveling, everyone!
Hello, Snow: Blizzard Slows Heating Oil Deliveries to a Crawl Throughout Northeast
Travels struggled through fresh snow with their luggage near New York's Penn Station on Monday. (image: msnbc.com)
The huge storm that marched up the East Coast over the weekend arrived in the Northeast with a bang on Sunday, dropping more than a foot and a half of snow in less than 24 hours in many areas. The storm snarled transportation throughout the region as planes, buses, trains and trucks all struggled to safely navigate through heavy snowfall and high winds. Like other businesses in the Northeast, heating oil dealers are struggling to meet their customers’ needs as the weather has severely limited oil trucks’ ability to make deliveries. However, residents in danger of losing heat due to en empty heating oil tank should be able to get the fuel they need to keep the heat on until the snow begins to melt and roads clear.
The timing of the blizzard’s arrival was especially unlucky for heating oil consumers. The Christmas Eve holiday on Friday and Christmas Day on Saturday meant heating oil dealers were operating with skeleton crews and making minimal deliveries from Friday through Sunday and scheduling deliveries requested during that time for Monday. By Monday morning, many of those planned deliveries had to be canceled or postponed, as the large trucks used to make deliveries simply could not venture out onto snowy and icy roads. Although many main thoroughfares were being plowed on Monday morning, public schools were closed for winter vacation, providing weak motivation to municipalities to pay for more extensive plowing, especially with snow-melting temperatures and rainfall forecast for later this week. The storm also limited heating oil companies’ ability to answer customer calls, as many employees could not find transportation into the office on Monday.
Of course, heating oil dealers are practiced in delivering heating fuel even during the most extreme weather conditions, so customers in urgent need of oil or heating system repairs should be able to get the help they need. Many heating oil dealers’ maintenance vans (which are considerably smaller and more maneuverable than oil trucks) carry five- or ten-gallon drums of oil, which can be used to deliver fuel by hand to customers in danger of going dry. HeatingOil.com’s Customer Service Director Mark Kohan urged residents in need of emergency service or fuel deliveries to contact their heating oil dealers right away. Although they may encounter longer hold times than usual, they can reasonably expect a visit from a technician some time today or tomorrow.
Now that snowfall has begun to taper off and road conditions are gradually improving, heating oil dealers around the Northeast will be working furiously to catch up on deliveries and service calls beginning Tuesday morning. With the New Year holiday fast approaching, many dealers will likely put extra time and manpower into reaching the customers they need to before the end of 2010. “There will be a huge amount of deliveries going out later this week,” Kohan predicted.
So if you are a heating oil user facing a rapidly-emptying tank, no need to panic—chances are you will get the oil you need at some point this week. In the meantime, break out your tall boots and mittens and enjoy the snow!
Extreme Cold to Hit Northeast Next Week Will Test Heating Oil Prices
Kim Cunningham of the Weather Channel warned CNBC viewers of record-breaking cold that will arrive in the Eastern US early next week. (image: cnbc.com)
CNBC reported on Wednesday that the frigid temperatures covering much of the nation will only get lower by next week, and looked into the cold snap’s effect on commodities prices, including heating oil.
During the Street Signs program, host Erin Burnett checked in with Kim Cunningham at the Weather Channel, who told viewers to expect temperatures in the teens and twenties next week across the entire Eastern US. According to Cunningham, a cold front will move south from Canada on Sunday and blanket most of the country with sub-freezing temperatures until next Wednesday.
According to commodities analyst Todd Horwitz heating oil has already “priced in” coming cold temperatures and is not expected to spike when those temperatures arrive next week. In contrast, natural gas prices have already begun to peak as the first serious cold of the winter has hit the US this week. Orange juice futures are also taking off in anticipation of the extreme cold seriously depleting crop yields in Florida.
Heating oil prices will likely inch upward along with other heating fuel prices in response to next week’s deep freeze, but adequate supplies of heating oil in the Northeast and the rest of the country will prevent supply shortages that can lead to huge price spikes.
Next week will bring frozen noses and fingers to heating oil users, but should fall short of causing extreme cases of sticker shock.
Watch the full video of the CNBC report at cnbc.com.
First Weather-Related Heating Oil Price Hikes of the Season Appear
Imminent cold weather in the US Northeast and Western Europe affected heating oil prices for the first time this heating season on Monday. (image: weather.blogs.foxnews.com)
Crude and heating oil prices have been bouncing all over the place over the last two weeks on rapidly changing economic factors. A debt crisis in Ireland led prices down initially, but a resolution of the crisis in the form of a massive bailout from the EU and IMF pushed prices higher. Tied to the debt problems in the EU is the value of the US dollar, which increases as the euro weakens—and the value of the dollar can have a profound effect on oil prices as crude sold on the NYMEX is priced exclusively in dollars.
While economic factors will continue to push and pull oil prices as the heating season goes on, a real-world factor will exert increasing levels of influence as fall turns to winter: temperature. The first instance of falling mercury bringing up the price of crude and heating oil this heating season took place on Monday morning, according to Bloomberg.
Colder-than-average temperatures are expected to hit the Midwest and Northeast next week, and traders began buying up heating oil futures contracts early Monday morning in anticipation of an upswing in demand. Bloomberg also reported in a separate article that temperatures in Western Europe are plummeting, adding to expectations of short-term demand increases and, in turn, higher prices.
Concerns over the other fundamental factor, supply, also helped drive up prices on Monday. Confidential diplomatic communications leaked by the website wikileaks.org over the weekend heightened tensions between Iran and several of its neighbors as well as the US. Any geopolitical conflict in the Middle East threatens crucial supplies of crude oil and helps drive up prices for all petroleum products.
Global supply of and demand for heating oil are two of the few fundamental (as opposed to financial or monetary) factors that influence the fuel’s price. And the best predictor of when demand for heating oil might increase is weather—the colder it gets, the more oil is needed to keep people warm, meaning demand will climb just after cold snaps set in. Although heating oil price jumps are never preferable, it is nice to know that they can sometimes be traced to simple real-world events like cold weather.
As cold weather loomed on Monday, the price of heating oil gained four cents per gallon at the New York Mercantile Exchange.
Bet it on the Rain: Weather Commodities Contracts for Sale
Why save money for a rainy day when you can make money on a rainy day? (image: commons.wikimedia.org)
Many products are bought and sold at commodities exchanges. Heating oil, gold, wheat, and cotton are some well-known examples. But some lesser-known products available for investment are weather products. That’s right, you can buy a contract at the Chicago Mercantile Exchange that pays off if you correctly predict how hot or cold it will be or how much in snows
Hurricane, snow, and temperature contracts have been available since 1999, but as Reuters reported on Friday, the CME (the company that owns the Chicago and New York Mercantile Exchanges) will begin offering rainfall futures and options contracts next month.
How can someone invest in something that no one can predict or control? What is the point of weather derivatives? The unpredictability weather is exactly what makes derivatives contracts on weather conditions useful. Basically, business whose profits are closely tied to the weather (like farmers who may lose harvests to early frosts or ski resorts that lose visitors to lack of snow), can buy the contracts as an insurance that hedges against unfavorable weather conditions. The CME’s Introduction to Weather Derivatives uses a heating oil dealer as an example to explain how derivatives work:
A heating oil retailer may feel that if the winter is very cold they will have high revenues — so they might sell an HDD [heating degree day] call. If the winter is not particularly cold, the heating oil retailer keeps the premium on the call. If the winter is very cold, the retailer can afford to finance the option pay out with higher-than-normal revenues.
Weather futures offer just one more example of the often-unusual and largely-unknown workings of world commodities markets and the truism that if there is money to be made on any event or market condition, capitalism will find a way to do it. So if you ever hear an exasperated heating oil user exclaim, “These commodities markets are so unpredictable! I might as well just invest in the weather,” you can tell them, as a matter of fact, you can.
This Season’s Heating Oil Outlook: Higher but Steadier Prices
This graph of past and forecast average retail heating oil prices from the EIA shows that while prices are expected to rise this winter, the incresae will not be nearly as steep as in previous years. (image: eia.doe.gov)
Now that autumn and the heating season have officially begun, many heating oil users are wondering what to expect in terms of prices and weather over the next few months.
Several different groups offered price and temperature forecasts this week. On Wednesday, the Department of Energy’s Energy Information Administration (EIA) released its Short Term Energy and Winter Fuels Outlook. The Outlook predicted that heating oil users across the country will pay about 12 percent (approximately $220) more to heat their homes this heating season than last season. The EIA predicts that heating oil prices in the Northeast will average $3.06 per gallon this winter, an increase over last winter’s average of $2.84. These predictions are clearly not great news for heating oil users, especially during these difficult economic times. But other forecasts point to prices, though they’ll likely be higher than last year, staying steadier than they have in past years. This is in line with a prediction made by the EIA in August, which forecast that average prices would rise slowly and evenly as the season takes off to a peak of $3.10 per gallon, after which prices will fall through the late winter and early spring.
In an article released ahead of the EIA’s Outlook, the Associated Press presented its own forecasts for home heating conditions this season. The AP’s predictions are similar to those made by the EIA, and included expectations of higher heating oil prices than last season, due in most part to rising crude prices tied to a slightly better economy and increases in global demand. When it comes to weather, however, the AP’s outlook differs markedly from that of the EIA. Citing “forecasters,” the AP stated that colder water in the Pacific Ocean will create a “La Niña Effect” and keep winter temperatures relatively mild in the Northeast:
La Nina conditions are correlated with warmer weather in the South and East because they allow the jet stream, which brings warmer temperatures, to wander north. Weather over the arctic can gum up those works, however, and push colder weather south, so forecasters aren’t as confident in their predictions for the east as they are for the Northwest. Still, La Nina makes a repeat of last year’s prolonged eastern cold snap only a remote possibility.
In contrast, the EIA’s report included references to the National Oceanic and Atmospheric Association’s degree-day forecast for the winter, which estimates that it will be colder than the winter of 2009-2010:
the Northeast, the principal market for heating oil, is projected to be about 5 percent colder than last winter.
For what it’s worth, both forecasts called for a much warmer winter in the Southeast, which experienced a prolonged cold snap last winter.
So the bottom line for heating oil users is that prices are expected to be about 10 percent higher this heating season, due mostly to a slight increase in consumption and rising crude oil prices. But as the Independent Connecticut Petroleum Association (ICPA) reminded readers in its Fall Energy Outlook on Wednesday, EIA predictions are nothing more than educated guesses and have been wrong before.
There is some good news: supplies of heating oil in the Northeast and around the country are still at extremely high levels (as the ICPA outlook emphasized), which will protect against major demand-induced price spikes this season. This factor topped the list of influences on prices in a press release by the heating oil industry’s Energy Communications Council, which also noted that a major increase in conservation efforts by homeowners in recent years will continue to lower heating oil costs. The investment bank Merrill Lynch predicted in late September that those record-high inventories and other financial influences will help bring down prices considerably in the early winter (December or January). The AP report partially supports that outlook, stating, “Early October is typically when oil prices are highest during the year, so analysts expect them to gradually fall as winter wanes.” If that assessment is correct, the highest prices of the season are right now, and the larger, three-quarter-tank heating oil deliveries made in the middle of winter will be considerably more affordable.
How to Prepare Your Heating Oil System for a Hurricane
Hurricane Earl at it strongest at 2 am on September 2, when winds speeds reached up to 159 mph. (image: NASA via WSJ.com)
Although Hurricane Earl was downgraded to a category 3 storm on Thursday afternoon, it’s still a whopper of the storm whose effects could soon be felt in much of the Northeast. According to a report by the Washington Post released at 2:30 pm Eastern time on Thursday,
Forecasters were trying to determine whether the storm would stay offshore as it headed up the Northeast coast or bring hurricane-force winds to Long Island and the New England coastal area.
If the storm does move closer to the East Coast as it moves north, coastal areas of the Northeast will get most of Earl’s intense wind and rain, while inland areas may see few effects. At the moment, Cape Cod, Nantucket, and Long Island are most likely to see serious tropical storm conditions over the next two days or so.
Those areas are home to many heating oil users, and to help them prepare for Earl’s arrival, the Energy Communications Council (which is funded by the National Oilheat Research Alliance) issued a press release offering tips on how to prepare and check up on oil-fired heating systems before and after flooding:
Preparation before a flood
• If you must evacuate, turn off the heating oil supply valve at the tank before flood waters rise.
• If you must evacuate, turn off furnace or boiler emergency switch.
• Particularly in FEMA designated ‘flood prone areas,’ the National Fire Protection Association (NFPA) recommends that basement and above-ground heating oil tanks should be ‘anchored to resist movement’ resulting from a flood condition.After a flood
• If oilheat equipment has been flooded, be sure to shut off the tank service valve if you did not do so before evacuating.
• Look for any visible structural damage. If the tank has shifted, lines are bent or damaged, or you notice anything else unusual, contact your heating oil retailer immediately.
• Damage to pumps, filters, and electronic controls is a significant problem caused by flooding. Heating oil appliances and equipment that have been underwater should be inspected by your professional retailer before being placed back into service.
Hopefully, no one will have to worry about flooding from Earl’s heavy rain. But if heating oil users anywhere in the Northeast are forced to evacuate their homes, it’s always better to be safe than sorry.
New Winter Storm Walloping Northeast Will Raise Heating Oil Prices
The snowstorm that is blanketing NYC and the rest of the Northeast will bring higher heating oil prices as soon as this afternoon. (image: missapril1956 via flickr.com)
Snowmageddon The Sequel arrived in the Northeast today, with snowfall totals reaching almost 20 inches in parts of Pennsylvania and New York State as of 10 o’clock this morning. The storm that was expected to continue dumping a mix of rain and snow in many coastal areas has turned into an all-out snowstorm as temperatures dropped to lower-than-expected levels last night. Schools and business throughout the region are closed due to the snow. Some roads and highways are also closed; many heating oil deliveries will be delayed or disrupted throughout the region on Friday and Saturday.
Matt Rogers, president of Commodity Weather Group, told Bloomberg TV this morning (watch the full segment below) that the storm will likely drive up demand for heating oil in the Northeast. He pointed specifically to the “combination of the high wind chills and colder-than normal temperatures” as reasons for heating oil users in the Northeast to burn more oil. Rogers also noted that extensive accumulation of snow as we’re seeing today can have a residual effect, causing high demand levels to carry on for several days after the storm has cleared. On the flip side, Rogers described some “bearish” influences of winter storms on heating oil: power outages that reduce demand and transportation issues that slow down or block heating oil deliveries. All things considered, Rogers seemed to think that weather-related factors would counterbalance each other and mitigate any changes in the price of heating oil.
IEA: Cold Weather Isn’t Boosting Oil Demand
With demand for heating oil trending downward, wintry weather has less and less impact on global oil demand. (image: ft.com)
Conventional wisdom and common sense would suggest that cold weather increases heating oil demand, which lifts demand for crude, and higher demand leads to higher oil prices. Many banks and financial institutions agree, and heating oil consumers have seen day-to-day heating oil prices rise sharply on occasion in response to a cold snap. When cold weather hits, investors are willing to pay more for crude and heating oil futures because they expect oil demand will surge during freezing weather.
However, the International Energy Agency (IEA) says that’s simply not the case, reports the Financial Times. In spite of a winter that has been colder than normal, heating oil demand in industrialized countries this quarter is down 13 percent from last year, says the IEA. In the US, heating oil inventories actually increased earlier in February, which is surprising for a fuel that often sees steady demand and falling inventories throughout the winter.
This Week in Heating Oil February 12, 2010: Snowmageddon and Oil Price Forecasts
Along the East Coast, this week was all about snow. The huge snowstorm that hit the region late Tuesday night and hovered through Wednesday night crippled transportation and even brought about the complete shutdown of the federal government for two days. The boost in heating oil demand resulting from so many people staying home and staying warm brought about a moderate increase in heating oil prices on Wednesday that offset falling prices on Monday. Considering the severity and breadth of the storm, the Wednesday price increase was much smaller than previous weather-related price hikes.
On the world stage, three major energy organizations adjusted their crude oil demand and price forecasts for 2010 this week. The International Energy Agency revised upward its prediction for world oil demand this year by a slim margin, expecting the world economy to recover quickly and drive up demand for oil. On the other hand, the Organization of Petroleum Exporting Countries and the US Energy Information Administration are more pessimistic about oil demand in 2010, predicting less growth than previously thought.
The pace of oil demand growth this year will be the main factor in determining crude oil prices for the remainder of 2010, which will in turn determine heating oil prices. Although a fast and robust recovery in the global economy would be good news for many, heating oil users might want to hope for a more measured recovery to help keep their heating costs down for a few extra months.
embedded by Embedded Video
YouTube Direkt
New Snowstorm Could Hit East Coast on President’s Day
After two weeks of snow, Washington DC and the East Coast may face another storm. (image: examiner.com)
Severe winter snowstorms have wreaked havoc on the East Coast for the last two weeks, shutting down airports, schools, and the federal government. Snow hit Texas and canceled flights at Dallas-Fort Worth International Airport, and a state of emergency in Delaware closed roads to all drivers except emergency vehicles and essential personnel. And now, just when folks in the Mid-Atlantic and New England thought they had survived “snowmageddon” (see our photo gallery of snowmageddon in New York City), another system could bring more snow on President’s Day, reports Bloomberg.
While the next storm system will be mild compared to the blizzards that have recently buried the East Coast, Accuweather says it could drop another six inches of snow on cities and towns already scrambling to clear roads and reopen schools and businesses.
Heating oil prices have risen moderately in the face of such snow and cold, but oil prices have responded as much to financial factors, such as the strength of the dollar, and global events, such as sanctions against Iran, as they have to the latest blast of winter weather. Another storm could boost heating oil demand and lift heating oil prices, but the latest round of snowstorms has underscored the fact that the price of heating your home can be affected as much by events around the world as by weather outside your door.
Winter Storm Update: Delaware Declares State of Emergency; Heating Oil Deliveries Allowed to Continue
Snowplows and heating oil trucks are among the vehicles allowed on Delaware’s roads during the state of emergency. (image: deldot.gov)
In response to the severe snowstorm pummeling the East Coast—the second to hit Delaware in a week—Gov. Jack Markell declared a state of emergency throughout the state and banned driving with the exception of “emergency vehicles and essential personnel,” reported DelawareOnline.com.
Heating oil trucks were among the exempted vehicles, but even with fewer cars on the road the blizzard will likely make deliveries difficult. Gov. Markell urged private businesses to consider closing because of the dangerous weather conditions, and heating oil companies may not be operating at full capacity.
If you are expecting a heating oil delivery during the storm, read HeatingOil.com’s tips to help make your delivery go smoothly.
Snowmageddon 2010 in NYC!
While HeatingOil.com employees toiled away during the biggest storm of the season, our fearless photographer Nicholas Whitaker braved the blizzard conditions to get some images of the storm’s effects on downtown Manhattan near the HeatingOil.com offices. Here’s your chance to see Snowmageddon without leaving the warmth and comfort of your home!
A garbage truck/snow plow doing its thing on the streets of TriBeCa.
Snow accumulates on a parked bicycle on Wooster Street, with the Canal Street Station post office in the background.
The wet and heavy snow is sticking to everything, including this emergency call box.
With dangerous driving conditions throughout the Northeast, most drivers stayed home today, as shown by this near-empty parking lot.
Looking south down Church St. from Canal St.
The weather reduced car and foot traffic on usually-bustling Canal St. to almost nothing.
Tips for Getting Heating Oil Delivered During the Storm
A heating oil delivery driver makes a delivery in snowy conditions earlier this year in Farmingham, Massachusetts. (image: boston.com)
Another major storm is headed toward the Mid-Atlantic and Northeast areas, and is forecasted to dump a foot or more of snow on the region between now and Thursday night. Residents from Maryland to Maine are preparing for school closures and transportation problems over the next 48 hours. For heating oil users, making sure they’ll get an oil delivery when they need it should be a top priority. If you’re in need of a heating oil delivery this week, take these steps to make sure your heat stays on while you weather the oncoming storm:
1) Order today. If your heating oil tank is currently 1/3 full or less, you should put in an order right away and aim for delivery today or tonight, before the snow begins to fall. Oil dealers will be extremely busy all week, so they may not be able to deliver before the storm hits, but the sooner you place your order, the closer you’ll be to the top of the delivery list.
2) Clear your fill pipe. Residents up and down the East Coast know that shoveling and salting are all part of dealing with winter storms. As Pennsylvania’s ABC 27 News reminds us, heating oil delivery drivers must be able to find your fill pipe in order to fill your tank. Make sure that your fill pipe is free of snow, clearly visible, and accessible from the street.
3) Keep your chimney clear. Just like a fireplace, your heating oil burner has a chimney (also called a stack or exhaust pipe) to vent exhaust from burning oil. Make sure that your burner’s exhaust line remains clear and does not get obstructed by snow. A blocked exhaust pipe can lead to less efficient performance by your heating system and dangerous exhaust fumes seeping into your home.
Following these simple steps will reduce the danger of non-delivery and system failure and keep you warm during the fast-approaching second “snowpocalypse” of 2010. So best wishes to the shovelers and plowers out there, and keep in mind: spring is only 39 days away!
HeatingOil.com Weather Report: January 13, 2009
(image: weather.com)
Today’s Northeast Weather: Light rain showers and clouds will hit the Northeast, as the bitter cold front that’s seized the region gives way to warmer climes. Only slightly warmer climes, though. There won’t be much warmth to speak of in Northern New England as highs are expected to loom only in the teens to upper 20s. Further south it’ll be warmer, with highs potentially reaching into the 40s. Heating oil deliveries shouldn’t experience any problems despite a chance of rain throughout the region, since no more than an inch is expected. Only the Adirondacks could see as much as three inches of rain. And, although clouds will blanket the area, the good news is that the sun also is expected to peek through.
Tomorrow’s Forecast: Thursday calls for more of the same—a mix of sun and clouds—along with some warmer weather for the upper reaches of the area. Northern New England could see highs hit the 20s or, possibly, the 30s. It’s more of the same weather further south though, with highs again expected in the 30s or 40s.
Local Temperatures and Heating Degree Days: (January 12)
New York City: Low 28° F, High 35° F. HDD: 33, 0 from average
Long Island: Low 28° F, High 35° F. HDD: 33, -1 from average
Boston: Low 28° F, High 34° F. HDD: 34, -2 from average
Portland, Maine: Low 22° F, High 28° F. HDD: 40, -3 from average
Burlington, Vermont: Low 13° F, High 26° F. HDD: 45, -2 from average
Washington, DC: Low 26° F, High 35° F. HDD: 34, +2 from average
Seattle, Washington: Low 47° F, High 53° F. HDD: 15, -9 from average
Sources: weather.com, weather.gov/climate
HeatingOil.com Weather Report: January 12, 2009
(image: weather.com)
Today’s Northeast Weather: The Northeast will begin to wrest itself from the grip of a bitter cold snap, with average temperatures ranging from 7 degrees below normal to 5 degrees above normal for this time of year. High temperatures today will range from around 10 in northern New England and Upstate New York to the middle 30s on the coasts and south toward Chesapeake Bay. Dry weather should pose no problems for heating oil deliveries.
Tomorrow’s Forecast: Much of the weather should be dry through Friday, with the exception of a few snow showers in the Adirondacks tomorrow and some snow in inland areas on Friday. Temperatures will begin to rise and should be near normal levels for the next week. A storm system developing and moving across the Gulf of Mexico in the next few days will bring some snow showers and wet snow and sleet to the Mid-Atlantic and Central Appalachians by Sunday.
Local Temperatures and Heating Degree Days: (January 11)
New York City: Low 21° F, High 31° F. HDD: 39, +7 from average
Long Island: Low 14° F, High 33° F. HDD: 41, +7 from average
Boston: Low 17° F, High 36° F. HDD: 38, +2 from average
Portland, Maine: Low 8° F, High 33° F. HDD: 44, +1 from average
Burlington, Vermont: Low 17° F, High 29° F. HDD: 42, -5 from average
Washington, DC: Low 16° F, High 36° F. HDD: 39, +7 from average
Seattle, Washington: Low 45° F, High 57° F. HDD: 14, -10 from average
Sources: weather.com, weather.gov/climate
-
Got a tip
Have a question? Let us know! Contact the HeatingOil.com newsroom now.
for us?