Inventories of winter fuels, including propane, natural gas, coal used for electricity generation and distillates, which includes heating oil, are well above typical historical levels as the 2009-2010 winter heating season draws closer, the Energy Information Administration reports.
“Current high inventories stem primarily from the recession,” the agency said. “As the economic downturn deepened throughout 2008 and 2009, energy demand fell, but supply was relatively slow to respond.”
Despite the recession, which data shows began in the United States in December 2007, and a sharp rise in oil prices through July 2008, total world oil demand increased 1.1 percent in the first half of 2008 and total world oil supply climbed 1.8 percent for the period. World oil demand fell in the third and fourth quarters of 2008, but global oil supply did not drop from 2007 levels until the fourth quarter 2008.