In its weekly publication “This Week in Petroleum,” the U.S. Energy Information Administration (EIA) wrote, “Distillate inventories on the U.S. Gulf Coast reached a record high the week of August 21, 43% higher than the previous five-year average, and remained near this level through September.” We have discussed the high distillate inventories that resulted from demand declines during COVID shutdowns earlier this year.
Here in mid-October, distillate supplies remain well above the top end of the five-year average. Airlines continue to struggle to recover, pressuring distillate draws from national inventories. In its early October Short Term Energy Outlook, EIA forecast a 10% fall in heating oil prices through winter 2020-21 compared to last year.
On October 14, Chip Flory and Davis Michaelsen talked with Greg Anderson about using bio-diesel as a home heating fuel. Anderson is a member of the National Bio-diesel Board, the Nebraska Soybean Board and grows soybeans in eastern Nebraska.
Anderson walked through heating oil’s recent history and suggests that blending bio-diesel with conventional home heating oil could increase demand not only for bio-diesel, but also for soybean oil as a feedstock. Anderson was optimistic about bio-heating oil gaining popularity, especially in the northeastern U.S. as more workers spend the winter at home, working from home offices. Hear the audio excerpt from AgriTalk below…