February 8, 2006 - Hello, Winter- As if on cue, with the opening ceremony for the Winter Olympics just two days away, winter weather has returned to many parts of the country after a long absence. Following the warmest weather on record in January in the United States, temperatures have recently returned to normal and below-normal in many regions of the country. But with only a few weeks left in the heart of winter, will the drop in temperature, even if it persists, dramatically affect heating oil prices?

While a severe, lengthy cold snap could have an impact on heating oil prices, there are a number of factors that would tend to limit any upward price movement. First, the record warmth in January enabled total distillate fuel inventories (diesel fuel and heating oil combined) to increase when they typically decline. Between December 30, 2005 and February 3, 2006, total distillate fuel inventories increased by 7.1 million barrels, compared to the most recent 5-year monthly average for January in which they declined by 9.5 million barrels...more (this link will take you to the Energy Information Administration website)

Why Doesn’t The Fuel Surcharge Track With Gasoline Prices?