- Help Wanted—Please Run $4 Billion University
- Apple Comes to AT&T's Rescue
- Rally Could 'Have Some Legs in 2010': Market Strategist
- Investors May Skew Housing Reality
- Buffett's Wealth and Fame Hasn't Helped 'Warren' As a Name
- Are Crazy Retail Deals Good for Business?
- Expect a 'Square Root-Shaped' Recovery: Chief Investor
- Madoff—The Holiday Drink
- HP to Feed on Enterprise Spending Next Year: Tech Analyst
- Bear, Lehman Execs Weren't Wiped Out by Crisis: Study
- Wall Street 'Bonuses' Disappearing—but Only in Name
- How Real Estate Investors Skew Housing's Reality
- Even Buffett's Huge Fame Can't Help the Name 'Warren'
- Wave of Debt Payments Facing US Government
- JPMorgan's Dimon Could Succeed Geithner: Report
- Suze Orman’s 'A Healthier, Wealthier You'
- Maria Blog: Are Crazy Retail Deals Good for Business?
- Latest Holiday Drinks: The Madoff...and the TARPatini
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- Existing-Home Sales Jump To Highest Level in 2-1/2 Years
- Wave of Debt Payments Facing US Government
- Paul: Audit the Fed
- Start-Up Proves Everything Really Is Better With Bacon
- TV Retailer QVC Joins 'Black Friday' Frenzy
- Buffett's Wealth and Fame Hasn't Helped 'Warren' As a Name
- S&P Stocks Trading at New 52-Week Highs
- Madoff—The Holiday Drink
- China Asks Its Banks to Slow Down
Text Size 
 |
Yet, heating oil prices at the NYMEX continue to set new records, climbing past $3.32 a gallon this morning, and settling at $3.19.
European gas oil hit a new record today as well on the expiration on the April ICE contract. And due to unexpectedly strong demand, particularly from China. We're talking at the demand picture for diesel in particular. That is truly on fire around the world.
After power outages in South Africa, Chile and China, many companies have been forced to run diesel generators to offset interruptions in electricity supply. A severe winter in Southeast Asia also served to increase heating oil demand.
Also as energy analyst Andy Lipow points out, look at the European Union and China--both of those regions use more diesel than gasoline. Our diesel exports are heavily making up for overseas demand. Add to that the refinery snags which are occurring across the country and other parts of the world and what you'll find is record diesel prices and record heating oil prices as well.
Goldman Sachs says the late season surge in distillate demand is driving a "transient" price spike. In a research report released late this afternoon, Jeff Currie and his team report though "strong power-generation demand and a late winter cold snap have pushed gasoil prices and the complex higher...we believe weak-near term transportation fundamentals are now likely to dominate."
So what impact will all this have on crude prices? Heating oil's 20 percent surge so far this year has certainly helped inspire the 15 precent rally in crude during this time. But Goldman still sees the downside risk in crude oil prices limited to the high $90s.
Questions? Comments? energysource@cnbc.com
- The show attracts a big TV audience every year, but this year it may take on even more importance.
- …you'll want to be prepared. Tips for getting the most out of the post-Thanksgiving shopping frenzy.
- Congressman Ron Paul explains to Squawk Box why he’s pushing legislation to audit the Federal Reserve.
- CNBC’s Phil LeBeau took a test drive of GM’s flagship electric car. Here’s what he thought of the Volt.
- The energy company Power Efficiency is building tools that regulate the power electric motors use.
- CNBC’s technology reporter Jim Goldman guides you through the best gadgets to buy this holiday season.
Data is a real-time snapshot *Data is delayed at least 15 minutes