The July American Petroleum Institute report indicates that the inventory of distillate for heating oil and diesel fuel increased 7.2 percent relative to July 2001. This is a good thing, because it gives refiners a jump on the seasonal demand for home heating oil, which (all other things equal) should lead to more stable heating oil prices this winter. Part of the reason for these increased stocks is the continued sluggish demand for air travel (from which the demand for jet fuel is a derived demand).
Interestingly, relative to July 2001, crude oil imports from Canada increased 18.1 percent. Most people who listen to media bluster do not realize that we import most of our crude oil from Canada and Mexico. Three cheers for free trade with our neighbors.