U.S. Northeast May Have Coldest Winter in a Decade (Update2)
By Todd Zeranski and Erik Schatzker
bloomberg.com
Sept. 28 (Bloomberg) -- The U.S. Northeast may have the coldest winter in a decade because of a weak El Nino, a warming current in the Pacific Ocean, according to Matt Rogers, a forecaster at Commodity Weather Group.
“Weak El Ninos are notorious for cold and snowy weather on the Eastern seaboard,” Rogers said in a Bloomberg Television interview from Washington. “About 70 percent to 75 percent of the time a weak El Nino will deliver the goods in terms of above-normal heating demand and cold weather. It’s pretty good odds.”
Warming in the Pacific often means fewer Atlantic hurricanes and higher temperatures in the U.S. Northeast during January, February and March, according to the National Weather Service. El Nino occurs every two to five years, on average, and lasts about 12 months, according to the service.
Hedge-fund managers and other large speculators increased their net-long positions, or bets prices will rise, in New York heating oil futures in the week ended Sep. 22, according to U.S. Commodity Futures Trading Commission data Sept. 25.
“It could be one of the coldest winters, or the coldest, winter of the decade,” Rogers said.
U.S. inventories of distillate fuels, which include heating oil, are at their highest since January 1983, the U.S. Energy Department said Sept. 23. Stockpiles of 170.8 million barrels in the week ended Sept. 18 are 28 percent above the five-year average.
Heating oil for October delivery rose 1.38 cents, or 0.8 percent, to settle at $1.6909 a gallon on the New York Mercantile Exchange. |
