EIA’s recently released Winter Fuels Outlook projects that household heating expenditures and consumption will rise for all fuels compared with last year’s unusually mild winter. This is particularly true for households that rely primarily on heating oil, which comprise only 5% of households nationwide, but more than one-fifth of households located in the Northeast. EIA projects heating oil expenditures will increase by an average of $378 (38%) this winter compared to last winter, the largest increase of any fuel. The increase is the result of an expected rise in heating oil prices of 42 cents per gallon (20%), primarily due to higher oil prices, as well as a 15% increase in consumption, due to colder weather. Despite higher forecast expenditures compared with last year, household heating oil bills this winter are expected to be almost one-third lower than average expenditures over the five winters prior to last winter. …
Source: This Week in Petroleum