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To: BigBull who wrote (72187)	9/2/2000 9:15:39 AM
From: jim_p	Read Replies (2) \| Respond to of 95453

Iranian official calls for end to sanctions chron.com Good timing!!

To: BigBull who wrote (72187)	9/2/2000 3:57:17 PM
From: upanddown	Respond to of 95453

Bull This sentence in your NYMEX post caught my eye. Heating oil consumption, which once made up 60% of distillate fuel demand, now accounts for only 17% during the winter. 17% DURING the winter. My understanding is that most newer (and larger) homes in traditional heating oil areas have NG heating and that there has been a ongoing trend to convert from HO to NG in older homes. If distillate stocks are low, it may be due more to robust demand for diesel and jet fuel. I would guess there is a lot of topping-off of HO tanks in anticipation of higher prices this winter but whether this winter is mild or severe may not have much of an effect on distillate demand. I think it makes the NG story even more compelling. From NYMEX contract info Heating oil, also known as No. 2 fuel oil, accounts for about 25% of the yield of a barrel of crude, the second largest "cut" after gasoline. In its early years, the heating oil futures contract attracted mainly heating oil wholesalers and large consumers. It soon became apparent that the contract was also being used to hedge diesel fuel, which is chemically similar to heating oil, and jet fuel, which trades in the cash market at a usually stable premium to NYMEX Division heating oil futures. Today, a wide variety of businesses, including oil refiners, wholesale marketers, heating oil retailers, trucking companies, airlines, and marine transport operators, as well as other major consumers of fuel oil, have embraced this contract as a risk management vehicle and pricing mechanism. The recent imposition of strict federal sulfur standards for diesel fuel have the potential to increase price volatility in some markets. John