David Ljunggren U.S. Energy Secretary Bill Richardson said today Washington believes it has enough heating oil stocks to avert supply problems on the East Coast this winter.
Analysts say the squeeze has contributed to the spike in world crude oil prices.
But Richardson played down fears of disruption, saying the government was confident it had done enough to ensure the situation remained stable. We've got the oil moving already, it's ahead of schedule and we believe with the help of Canada as a secure supplier that our potential disruption problems in the East Coast will be averted this winter. The federal government has urged consumers and businesses to fill their heating tanks and sign supply contracts early to lock in heating fuel prices. Prices are expected to rise as much as 40 percent this winter compared with last year. Canada is now the single largest supplier of heating oil to the United States but its refineries are running at close to full capacity.