High oil prices have proven to be a windfall for the provincial government, but it’s going to be a rough winter for those who heat their homes with oil.
Furnace oil actually went down by 5 cents a litre today but industry watcher Dan McTeague warns that we’re in short supply of that family of distillates which includes diesel, furnace and stove oil and jet fuel.
Higher revenues from the black gold allowed government to swap out for a surplus but it’s going to cost even more to fill the oil tank over the next few months than it now does.
McTeague says inventories of those products are low.
It’s at 60 percent below the 5-year average which is dangerous territory, he says. McTeague foresees $3 for a litre of diesel come January or February.