Residential heating oil and propane prices are approaching to be aloft than final winter

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Residential heating oil and propane prices entered a winter heating deteriorate aloft than final winter’s prices, and EIA’s Short-Term Energy Outlook (STEO) forecasts those prices will sojourn aloft by March. As a outcome of aloft wanton oil prices, colder approaching winter temperatures, and reduce fuel inventories than final winter, EIA forecasts that U.S. normal heating oil and propane prices will be 12% aloft and 10% higher, respectively.

Illustration by U.S. Energy Information Administration.

Prices for U.S. petroleum products such as heating oil and propane tend to follow changes in Brent wanton oil mark prices, the many widely used tellurian benchmark cost for wanton oil. Brent wanton oil prices are foresee to normal $56 per tub (b) this winter, adult from $51/b final winter.

Illustration by U.S. Energy Information Administration.

Although inventories of heating oil and propane are reduce this year than final year, they are still within a operation of values gifted in a prior 5 years during this time. As of Nov 24, essence fuel oil inventories in a Northeast (Petroleum Administration for Defense Districts 1A and 1B), where a immeasurable infancy of heating oil is consumed, totaled 37.7 million barrels, 31% reduce than during a same time final year. Total U.S. propane register levels were 73.2 million barrels as of Nov 24, 27% reduce than during a same time final year.

EIA’s State Heating Oil and Propane Program (SHOPP), a corner bid between EIA and state appetite offices, collects state-level residential heating oil and propane cost information in many states where residential use of heating oil and propane is common. SHOPP started in 1978 and has stretched over a years in response to larger need for timely cost information during durations of supply intrusion to heating oil and propane markets.

Illustration by U.S. Energy Information Administration.

SHOPP information are used by state and sovereign governments, a media, process makers, consumers, and analysts to guard markets as good as to promote puncture response to supply shortages of these heating fuels during a winter months. SHOPP collects residential heating oil and propane information in 21 states. In 17 additional states, SHOPP collects propane prices though not heating oil prices, and, in a District of Columbia, heating oil though not propane prices.

Illustration by U.S. Energy Information Administration.

SHOPP also includes indiscriminate propane prices in some states. Last year, EIA combined indiscriminate propane cost information supposing by a Oil Price Information Service for 10 additional states.

Source: EIA

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