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Gas industry

Heating Oil Futures Plummet Amid Record Cold Wave

Strategic Insights

— 1 min read

Despite the severe cold temperatures gripping the nation, heating oil futures on the New York Mercantile Exchange plummeted 2.12 cents to 47.96 cents per gallon on January 20, 1994, for February delivery. Spot prices also fell significantly, by 2.4 cents per gallon at the Gulf Coast and 2.65 cents per gallon at New York Harbor. The massive sell-off of heating oil futures has continued, with prices falling 4.7 cents per gallon since last Friday, amidst a record cold wave across much of the nation.

Key Takeaways:

  • Heating oil futures for February delivery fell 2.12 cents to 47.96 cents per gallon on the New York Mercantile Exchange.
  • Spot prices fell 2.4 cents per gallon at the Gulf Coast and 2.65 cents per gallon at New York Harbor.
  • February No. 2 heating oil futures tumbled 89 cents per barrel (4.7 cents per gallon) to 47.96 cents per gallon, with prices falling 4.7 cents per gallon since last Friday.
  • Spot prices at the Gulf Coast declined 20 cents to around $2.70/MMBtu, showing a huge gap between spot and futures prices despite gas supply shortfalls.
  • The Energy Information Administration reported a massive 4.1 million bbl drawdown of propane stocks last week, but noted that inventories are adequate despite the record cold weather.
  • February propane futures remained unchanged at 26.50 cents per gallon.
  • February unleaded regular gasoline futures for delivery to New York Harbour dropped 0.30 cents to 41.94 cents per gallon.
  • February West Texas Intermediate (WTI) crude oil futures fell 12 cents to $15.10 per barrel.

Statistics:

  • Heating oil futures for February delivery fell by 109.52 cents per barrel (2.12 cents per gallon).
  • Spot prices at the Gulf Coast fell by 2.4 cents per gallon.
  • Spot prices at New York Harbor fell by 2.65 cents per gallon.
  • Prices have fallen 4.7 cents per gallon since last Friday.
  • Total distillate inventories were reduced by 4.8 million bbl last week and now stand 4.6 million bbl lower than a year ago.
  • Indicated distillate demand last week of 4.324 million b/d surpassed new supplies by a huge 682,000 b/d.

Sources:

  • The New York Times, January 20, 1994.
  • Energy Information Administration, January 20, 1994.
  • American Petroleum Institute, January 20, 1994.
  • United Nations, January 20, 1994.

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