By Tom Doggett
WASHINGTON, Sept 30 (Reuters) - There will be plenty of heating fuel supplies in the United States this winter thanks to the weak economy, the government said on Wednesday, which is likely to save consumers money on their utility bills.
The recession has slashed industrial demand for energy, caused families to cut back on their driving and reduced the need for trucks to transport goods, all of which has boosted petroleum, natural gas and coal inventories.
'As the economic downturn deepened throughout 2008 and 2009, energy demand fell, but supply was relatively slow to respond. As a result, stocks of many fuels were pushed well above typical historical levels,' the Energy Information Administration said in its weekly review of the oil market.
'In total, fuel supplies are stacking up well ahead of winter -- a bright spot for consumers that, ironically, is due in large measure to the recession,' the Energy Department's forecasting arm said.
U.S. natural gas inventories are now 16 percent above their five-year average and are expected to hit a record 3.840 trillion cubic feet at the start of the winter heating season on Nov. 1, the EIA said.
CenterPoint Energy said on Wednesday it will pass along lower wholesale natural gas prices to its customers in Minnesota, which are expected to lower winter heating bills by up to 20 percent.
'The lower natural gas prices of the summer are a direct benefit of a tough economic market,' said David Baker, division regional vice president of gas operations. 'We are happy our customers will benefit from lower wholesale natural gas prices going into the winter heating season.'
Distillate stocks, which include heating oil, totaled 171 million barrels at the end of last week, 29 percent above their five-year average.
'While refiners avoided large gasoline stock builds over the summer, distillate inventories grew to unusually high levels as domestic distillate demand fell much more than expected and much more sharply than gasoline,' the EIA said.
In addition, combined distillate stocks from the United States and Europe equaled almost 41 days of supply at the end of July (the latest monthly data available), which is nearly nine days higher than the five-year average for that time of year, according to the EIA.
Bigger-than-normal European heating oil inventories could result in more fuel exports to the U.S. market this winter, which would benefit American consumers.
The EIA will release its official forecast of winter heating fuel supplies and demand on Oct. 6.
(Editing by Marguerita Choy)
((tom.doggett@thomsonreuters.com; + 1 202 898-8320; Reuters Messaging: tom.doggett.reuters.com@reuters.net)) Keywords: USA WINTER/FUELS (For help: Click 'Contact Us' in your desk top, click here or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com; +1 646-223-5546) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
WASHINGTON, Sept 30 (Reuters) - There will be plenty of heating fuel supplies in the United States this winter thanks to the weak economy, the government said on Wednesday, which is likely to save consumers money on their utility bills.
The recession has slashed industrial demand for energy, caused families to cut back on their driving and reduced the need for trucks to transport goods, all of which has boosted petroleum, natural gas and coal inventories.
'As the economic downturn deepened throughout 2008 and 2009, energy demand fell, but supply was relatively slow to respond. As a result, stocks of many fuels were pushed well above typical historical levels,' the Energy Information Administration said in its weekly review of the oil market.
'In total, fuel supplies are stacking up well ahead of winter -- a bright spot for consumers that, ironically, is due in large measure to the recession,' the Energy Department's forecasting arm said.
U.S. natural gas inventories are now 16 percent above their five-year average and are expected to hit a record 3.840 trillion cubic feet at the start of the winter heating season on Nov. 1, the EIA said.
CenterPoint Energy said on Wednesday it will pass along lower wholesale natural gas prices to its customers in Minnesota, which are expected to lower winter heating bills by up to 20 percent.
'The lower natural gas prices of the summer are a direct benefit of a tough economic market,' said David Baker, division regional vice president of gas operations. 'We are happy our customers will benefit from lower wholesale natural gas prices going into the winter heating season.'
Distillate stocks, which include heating oil, totaled 171 million barrels at the end of last week, 29 percent above their five-year average.
'While refiners avoided large gasoline stock builds over the summer, distillate inventories grew to unusually high levels as domestic distillate demand fell much more than expected and much more sharply than gasoline,' the EIA said.
In addition, combined distillate stocks from the United States and Europe equaled almost 41 days of supply at the end of July (the latest monthly data available), which is nearly nine days higher than the five-year average for that time of year, according to the EIA.
Bigger-than-normal European heating oil inventories could result in more fuel exports to the U.S. market this winter, which would benefit American consumers.
The EIA will release its official forecast of winter heating fuel supplies and demand on Oct. 6.
(Editing by Marguerita Choy)
((tom.doggett@thomsonreuters.com; + 1 202 898-8320; Reuters Messaging: tom.doggett.reuters.com@reuters.net)) Keywords: USA WINTER/FUELS (For help: Click 'Contact Us' in your desk top, click here or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com; +1 646-223-5546) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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