Heating Oil Consumption Impacted by El Nino

Warmer than average winter temperatures across the U.S. resulting from El Nino have caused the lowest heating oil consumption rate is over a decade. Futures prices closed down on December 31 to a low seasonal discount, normally seen only in the summer months. Consumption of fuel oil for trucks, trains, ship and residential and commercial heating in 2015 was down by over 450,000 barrels per day or 11 % compared to 2014. The U.S. National Oceanic and Atmospheric Administration reports that El Nino has caused warmer than normal weather since October reducing the demand for heating by 25%.