Average heating oil prices across the Northeast and Midwest region rose 9 cents in the last week and are already 80 cents a gallon more than at this time last year.
The EIA, a branch of the US Energy Department, has just launched its annual State Heating Oil and Propane Program (SHOPP). The program provides weekly data on heating oil and propane prices during the annual heating season, which run from October to March.
Energy prices usually rise in the Northeast and Midwest region during the annual heating season on the back of spiking demand as temperatures plummet. During this time the EIA provides weekly oil price monitoring data collected from 22 different states. Officials say the data is useful for policymakers and consumers if supply disruptions emerge during the heating season or winter temperatures become unseasonably cold.
Less than 10 percent of US households rely on heating oil to heat their homes. But the Northeast is by far the nation’s heaviest user, with millions of the region’s homes reliant on fuel oil for warmth
According to the EIA’s 2009 Residential Energy Consumption Survey, nearly half of New England homes (41.8 percent) use heating oil for their primary source of space heating.
The EIA predicted earlier this month that average heating oil prices this winter would hit their highest ever levels on the back of cooler temperatures and volatile world crude oil prices. The average home is expected to pay nearly $2500 between now and March, about $200 more than during the last heating season.
However there are hopes that prices will become more stable now federal regulators have signed off new rules designed to rein obsessive speculation in oil markets to help prevent volatile winter spikes in the cost of oil.
Weekly price data figures released last week by the EIA show average residential heating oil prices increased by nine cents a gallon during the week ending October 17. Average prices are now 80 cents a gallon more than at the same time 12 months ago. Wholesale prices are also up 83 cents a gallon compared to a year ago.
Heating oil prices will vary across the nation according to regional wholesale prices, transportation distances from refineries, infrastructure issues and independent oil suppliers’ overhead costs.
