DOE SAYS HEATING OIL SUPPLIES OK

DOE SAYS HEATING OIL SUPPLIES OK

Supplies of heating oil and other distillate fuels are expected to be ''adequate" to meet rising U.S. demand this winter, the Department of Energy said Tuesday.

In a report released at its annual Winter Fuels Outlook Conference, the DOE forecast distillate fuel consumption for the 1993-94 (October-March) winter heating season at 3.42 million barrels a day, up 4 percent from last winter.That demand forecast is based on normal weather this winter, the DOE said. But even assuming colder-than-normal weather, indications are that ''projected demand can be meet."

Residential heating oil prices are expected to average 94.9 cents a gallon this winter, matching last winter, but up from 86.9 cents in August, the agency said.

Prices are expected to rise quickly to a January 1994 peak of 96.7 cents and "then level off or drop," the DOE said.

However, heating oil prices tend to fall more slowly than they rise and the 1994 low isn't expected until June, the DOE said.

The implementation of new low-sulfur content requirements for on-highway diesel fuel is expected to help boost prices diesel to $1.22 a gallon, up 6.3 percent from last winter, the DOE said.