Slide 11 of 24
Notes:
So it wasn’t demand and production explains only part of the reason we got through last winter with enough stocks.
The mystery is solved when you look at net imports of distillate fuel last winter. As we found out, while imports are a small contributor to supply, they are sometimes crucial.
Last winter, imports were the main source of supply increase following the price spike. Previous record levels were shattered as imports came pouring into the country. The fact that Europe was enjoying a warmer-than-normal winter also encouraged exports to the United States. It was massive amounts of imports, particularly from Russia, that helped us get through last winter in as good a shape as we did.
Imports are expected to be relatively normal this winter. Added imports would probably only be available at a high price, just as they were last year.
