31.   John Hendon, a spokesman for Chevron Corp., said oil inventories are low for a variety of reasons.

32.   Last March OPEC agreed on production cuts in order to soak up world oil inventories and tighten up the market.

33.   Lean gasoline and heating oil inventories also helped refined product prices higher, traders said.

34.   Moreover, energy prices have not risen even as oil inventories have declined.

35.   Oil companies are building up heating oil inventories before winter.

36.   Oil inventories were reported below normal, but industry speakers said financial incentives to replenish them are lacking with prices so volatile.

37.   Oil prices were also buoyed because U.S. and European oil inventories were far smaller their historic averages.

38.   Oil companies usually build up heating oil inventories before winter.

39.   Oil futures fell yesterday after reports showed unexpected weekly increases in U.S. oil inventories, signaling supplies are ample as the market gears up for peak summer gasoline demand.

40.   On the East Coast, heating oil inventories are half of what they were a year ago.