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Northeast power plants that burn oil scrambled to secure supplies as record cold and snowfall hit the East Coast, with oil imports to the region jumping nearly 60% in a week. Cold also cut North Dakota Bakken gas output and raised gas demand for heating.
Surging distillate and residual oil demand for heating and power tightens East Coast fuel supply and supports diesel and crude prices. Lower Bakken output also tightens gas supply during peak demand.
oilprice.comZainab CalcuttawalaJan 5, 2018After 39 past bullish weather events, ULSD / Diesel moved a median +2.4% over 5 sessions (59% higher; middle half -4.5% to +6.1%), and +8.9% over 20.
After 40 past bullish weather events, Crude Oil (WTI) moved a median +1.6% over 5 sessions (63% higher; middle half -3.7% to +5.3%), and +6.1% over 20.
After 221 past bullish weather events, Natural Gas moved a median +3.3% over 5 sessions (61% higher; middle half -5.2% to +14.0%), and -0.3% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
