I don't think we've ever seen such a dramatic increase in the spread between heating oil and crude," said Kevin Norrish of Barclays Capital. The rally comes after prices plunged nearly 17 percent from record highs in late October, as signs of building crude supplies and slowing demand growth drove investors out of energy and into financial or equity markets. An early or severe winter could cause a price spike with household demand for heating. Continued mild weather, however, would give refiners more time to replenish stocks, providing a cushion against future cold snaps. The U.S. National Oceanic and Atmospheric Administration said on Thursday in a revised forecast that winter would be likely to bring warmer-than-normal conditions in the West and colder temperatures in the East, including the heavy-consuming Northeast. Demand for oil products on physical markets has been strong this week. Traders said China, the world's second-largest energy user, had boosted diesel imports to their highest levels since early 1999 to make sure supplies do not run short as in 2003. --More 2043 Local Time 1743 GMT
