eia ' s updated heating costs forecast home heating costs to soar this winter
americans can expect home heating prices to jump as much as 44 %
this winter because of strong economic growth and high crude oil
prices , according to the eia . a winter with especially long periods
of cold weather ' could cause even higher prices because heating fuel
storage levels are below average . homes that use natural gas can
expect to see the biggest jump in bills . prices paid by residential
customers are expected to average $ 8 . 58 per mmbtu , up about 30 % from
last winter ' s average of $ 6 . 61 . the higher prices , combined with
increased consumption , will push overall costs up to an average $ 780
this winter from $ 540 last year earlier , the eia said in an annual
report on winter fuels . high prices for competing petroleum - based
fuels will help keep natural gas prices high . homes with heating oil
will pay about $ 949 for fuel this winter , up 25 % from the $ 760 paid
last winter . prices will average about $ 1 . 37 per gallon , up 16 % from
last year ' s $ 1 . 18 , the report said . the 4 . 5 % of americans who use
propane to heat their homes will pay about 27 % more this winter at
$ 1 , 045 , compared with $ 823 last year . inventories of propane at the
end of last month were about 62 million barrels , 3 million above last
year ' s level . distillate stockpiles , which include heating oil and
diesel fuel , will be about 114 million to 118 million barrels at the
start of the heating season , about 15 % to 18 % lower than last year ,
the report said . the government projection excludes the heating oil
reserve created by the clinton administration , which stores 2 million
barrels . distillate stocks in the east coast are 41 million barrels ,
close to 40 % less than last year ' s level . in new england stocks are
over 60 % below the 1999 level . the eia estimated the monthly price of
crude oil will remain above $ 28 per barrel for the rest of the year ,
and then gradually decline next year to an average $ 25 per barrel .
because of rising demand in asia and continued growth in the us ,
higher oil production by opec has not been able to stem the rally in
prices , the report said . us crude oil inventories are about 287
million barrels , 17 million barrels below last year . the deficit is
smaller than last month , when there was a 26 million - barrel
shortfall , though supplies are still 8 % below normal and are not
expected to move into the normal range before the end of winter , the
report said . global oil demand this year is expected to increase 1 . 1
million barrels per day from last year and will grow by an additional
2 million barrels a day in 2001 to 78 million barrels a day ,
according to the report . the average retail price for gasoline , which
was about $ 1 . 52 per gallon last week , will fall to about $ 1 . 46 per
gallon in december and $ 1 . 40 by next march , the report said . the
report says a very cold winter could cause northeast heating oil
prices to surge , and that could spill over into east coast diesel
markets . the government said the chances of this were greater this
year because of tight distillate supplies , especially in the
northeast . diesel prices will fall by about $ 0 . 09 to $ 1 . 55 per gallon
in december and $ 1 . 35 by next summer , assuming normal conditions this
winter .
eia ' s updated heating costs forecast
home heating costs to soar this winter
americans can expect home heating prices to jump as much as 44 %
this winter because of strong economic growth and high crude oil
prices , according to the eia . a winter with especially long periods
of cold weather ' could cause even higher prices because heating fuel
storage levels are below average . homes that use natural gas can
expect to see the biggest jump in bills . prices paid by residential
customers are expected to average $ 8 . 58 per mmbtu , up about 30 % from
last winter ' s average of $ 6 . 61 . the higher prices , combined with
increased consumption , will push overall costs up to an average $ 780
this winter from $ 540 last year earlier , the eia said in an annual
report on winter fuels . high prices for competing petroleum - based
fuels will help keep natural gas prices high . homes with heating oil
will pay about $ 949 for fuel this winter , up 25 % from the $ 760 paid
last winter . prices will average about $ 1 . 37 per gallon , up 16 % from
last year ' s $ 1 . 18 , the report said . the 4 . 5 % of americans who use
propane to heat their homes will pay about 27 % more this winter at
$ 1 , 045 , compared with $ 823 last year . inventories of propane at the
end of last month were about 62 million barrels , 3 million above last
year ' s level . distillate stockpiles , which include heating oil and
diesel fuel , will be about 114 million to 118 million barrels at the
start of the heating season , about 15 % to 18 % lower than last year ,
the report said . the government projection excludes the heating oil
reserve created by the clinton administration , which stores 2 million
barrels . distillate stocks in the east coast are 41 million barrels ,
close to 40 % less than last year ' s level . in new england stocks are
over 60 % below the 1999 level . the eia estimated the monthly price of
crude oil will remain above $ 28 per barrel for the rest of the year ,
and then gradually decline next year to an average $ 25 per barrel .
because of rising demand in asia and continued growth in the us ,
higher oil production by opec has not been able to stem the rally in
prices , the report said . us crude oil inventories are about 287
million barrels , 17 million barrels below last year . the deficit is
smaller than last month , when there was a 26 million - barrel
shortfall , though supplies are still 8 % below normal and are not
expected to move into the normal range before the end of winter , the
report said . global oil demand this year is expected to increase 1 . 1
million barrels per day from last year and will grow by an additional
2 million barrels a day in 2001 to 78 million barrels a day ,
according to the report . the average retail price for gasoline , which
was about $ 1 . 52 per gallon last week , will fall to about $ 1 . 46 per
gallon in december and $ 1 . 40 by next march , the report said . the
report says a very cold winter could cause northeast heating oil
prices to surge , and that could spill over into east coast diesel
markets . the government said the chances of this were greater this
year because of tight distillate supplies , especially in the
northeast . diesel prices will fall by about $ 0 . 09 to $ 1 . 55 per gallon
in december and $ 1 . 35 by next summer , assuming normal conditions this
winter .