New England heating oil prices
Heating oil and propane prices are likely to continue to be at current levels for the near future, according to a recently available EIA report (United States Energy Ideas Administration, Mar 6, 2012). Heating fuel costs are mainly driven by crude oil rates, and EIA wants crude oil costs to keep above $100 a barrel in 2012-2013.
Just what Effects Warming Oil and Propane Costs?
The costs of warming oil and propane are primarily driven by crude oil. Severe weather, seasonal demand, and provide disruptions can also affect short term heating oil and propane costs.
Exactly What Will Impact 2012 Crude Oil Rates?
There was a tremendous number of doubt towards future of oil prices, since there are so many facets that may affect offer and demand.
• China’s financial growth rates decrease
• The European financial obligation crisis doesn't resolved or gets far worse
• Conflicts in Africa therefore the center East get resolved in 2012 and oil supply increases (e.g. Yemen, Syria, Sudan and Iran) • greater than expected globe economic growth
• decline in oil offer from African and Middle Eastern nations due to conflict or economic sanctions (e.g. Yemen, Syria, Sudan and Iran)
• worldwide economies improve faster than expected and oil need increases
• The European financial obligation crisis is solved in 2012 and countries in europe increase their particular interest in oil
Heating fuel bills will likely be higher than a year ago, based on a current EIA report (US Energy Ideas management, October 12). In comparison to final winter season, the EIA is forecasting 10% higher heating oil costs and 9per cent greater propane prices for the Northeast. They are forecasting a somewhat hotter than normal winter season, which may help lower heating expenses.
The EIA is a professional company and important forecasts. Nevertheless customers should note that no expert or agency can predict home heating oil and propane rates with 100per cent accuracy, there are way too many factors that affect rates. Many of these aspects feature: crude oil costs, local weather, regional supply, and speculation.
Because crude oil is the major aspect in home heating oil, the cost of crude oil will eventually drive warming oil costs. Across long haul, propane prices additionally usually follow crude oil costs.
Elements That Could Influence Short-term Crude Oil Rates
These events will likely trigger lower crude oil prices:
- Lower forecasts for the international financial development and data recovery
- European financial obligation crisis gets far worse
- Libyan oil offer returns on the web quicker than anticipated
The occasions will most likely cause higher crude oil rates:
- Global economies improve quicker than expected
- Syrian oil offer is interrupted as a result of present chaos or economic sanctions