LOW HEATING OIL SUPPLY KEEPS PRICES HIGH

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October 12, 2000 LOW HEATING OIL SUPPLY KEEPS PRICES HIGH

Reuters October 12, 2000 NEW YORK -- Renewed concern about sparse heating oil supplies for the U.S. Northeast kept U.S. oil prices rising Wednesday for a fourth straight session.

Oil and heating oil prices remain at their highest levels for this time of year since 1990, when the Iraqi army occupied Kuwait.

Oil prices were buoyed by a report late Tuesday from the American Petroleum Institute that showed no appreciable gain last week in national heating oil stocks. The API said there is 51 percent less heating oil in East Coast stocks than in early October 1999. The East Coast, particularly the Northeast, is highly dependent on this fuel for heating homes and offices.

Crude oil futures of U.S. benchmark West Texas Intermediate gained 7 cents, to $33.25 a barrel, on the New York Mercantile Exchange.

Since oil started its four-day advance Friday, U.S. oil prices have gained about 9 percent.

Heating oil futures gained more than 2 cents Wednesday, to $1.0160 a gallon. It was the first time since Sept. 22 that heating oil settled at more than a dollar.

http://www.chicagotribune.com/business/businessnews/article/0,2669,SAV-0010120078,FF.html

-- Martin Thompson (mthom1927@aol.com), October 12, 2000

Answers

And now the EIA figures come out to verify the API's reported drops in inventories. Bad combination.

-- Billiver (billiver@aol.com), October 12, 2000.

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