MF Global bankruptcy hits marketers, but heating oil supplies not a worry
While some US Northeast heating oil marketers have had funds frozen
by the MF Global bankruptcy, the impact is "limited" and should not
hamper supplies to customers during the winter heating season, Michael
Trunzo, president and CEO of the New England Fuel Institute, said
Monday.
"We have seen a limited impact of the MF Global situation on heating oil
marketers in the NEFI region," Trunzo said in an email response to
questions. "We would not anticipate an impact on heating oil supply or
service to heating oil customers."
Six US heating oil dealers have had their MF Global accounts frozen,
hampering their ability to meet customer obligations, NEFI said in an
email newsletter late Friday. Trunzo said Monday the companies' names
would not be made public.
"NEFI is working to determine the scope of the impact on the heating oil
industry from the recent collapse of MF Global Holdings, a major global
securities and futures brokerage firm," the group said. "A number of
heating oil dealers have been stung by MF Global Holdings bankruptcy
filing on October 31, 2011."
NEFI said the decision by the MF Global bankruptcy trustee to freeze
customer accounts is "preventing customers, including a number of
heating oil dealers, from withdrawing funds." The group said it "is
working with the Commodities Futures Trading Commission to ensure that
heating oil dealers who hedge are not exposed similar risk in the
future."
--Beth Evans,
beth_evans@platts.com
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