Slide 2 of 18
Notes:
- This slide shows the strong influence crude oil prices have on retail distillate prices.
- Distillate tracks the crude price increases seen in 1996 and the subsequent fall in 1997 and 1998. Distillate prices have also followed crude oil prices up since the beginning of 1999.
- Residential heating oil prices on the East Coast (PADD 1) are estimated at about $1.20 this August – almost 40 cents per gallon higher than last August, which is an increase of almost 50% over year ago prices.
- About 24 cents or 60 percent of the increase is due to the increase in crude oil costs;
- Another 6% of the increase represents the return to more normal spreads;
- And the remaining 33% increase is due to the very tight distillate market balance.
- Diesel fuel prices behaved similarly, though with less of a spike last winter. The average East Coast diesel price in August was $1.48 per gallon, 33 cents or 29 percent higher than a year ago.
