For Release: #3962-96

Release: October 22, 1996

CFTC Cooperating with Department of Energy on Heating Oil Review

WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today that its Division of Economic Analysis is cooperating with the Department of Energy (DOE) on a review of the heating oil market and the relationship between the futures market and heating oil inventories.

Issues have been raised by market participants about the possible effects of the futures markets on heating oil inventories, and the DOE has promised to analyze the situation. The CFTC will provide data and technical expertise to assist the DOE in its review.

The staff of the CFTC routinely conducts surveillance of all futures markets for evidence of manipulation or other illegal activity. It appears to the staff that price changes in the heating oil futures market have been influenced only by economic factors relating to supply and demand. The Commission itself has made no determination on this matter. The CFTC staff continues to monitor market conditions and will share relevant information in this regard with the DOE.