New England May Be One Cold Snap Away From a Heating Fuel Crunch

Heating oil prices in the northeast U.S. may jump during cold snaps this winter, as the closing of region’s biggest refinery and new clean-fuel rules for ships trim supply.

Forecasts for a mild winter have so far kept a lid on prices, even as inventories around New York Harbor are at the lowest level for early November in three decades. While there’s ample supply from eastern Canada and the Gulf Coast to supplement local production during normal weather, a prolonged cold snap may drive prices sharply higher for short periods to attract cargoes from further away.