Oil Price Expectations for the 2013 Winter Season

heating oil

heating oilThe Energy Information Administration (EIA) is responsible for providing a Short Term Energy Outlook every year so as to handout projections for U.S. residential heating fuel prices for the winter season. For this year, here are the specifics:

Heating Oil: $3.63 per gallon
Electricity: 12 cents/kilowatt hour
Natural Gas: $11.33/1,000 cubic feet

Based on the above projections, we can say that the price for oil is significantly becoming steadier and there is an ongoing trend that those using oil to fuel their heating systems are going to like what they are seeing for the coming winter seasons. It is no secret that for so many years, heating oil has been overshadowed by the emergence of natural gas, and of course, there is electricity. But then again, it doesn’t mean that those using oil should seriously think about switching to natural gas and eventually have a new heating system installed at home.

Right before the heating season starts, homeowners feel compelled to do something about cutting their energy costs. And while the northeastern part of the country suffers the harshest winters, practically the entire nation depends on heating systems and equipment to combat the cold. But if there is one thing that really burdens most of us, it’s the fact that we have to deal with higher energy costs during the season. But reality bites: no one can escape the winter.

Currently, while natural gas futures climbed to nearly five percent increase, heating oil on the other hand is steadier at a three percent climb. By their respective measurements, natural gas closes at $3.72 per million BTUs while heating oil is projected at $3.07. By comparing the numbers, one can say that heating oil is having the edge, at least for now. As for propane futures, it is really more difficult to track down noting the fact that the market for it is not as big as heating oil and natural gas.

In the wake of the traditional ups and downs of heating expenses and fuel sources, it is rightful to state that consumers, most especially homeowners are getting more and more cautious and wary about using the most practical fuel source for their heating. But it has to be emphasized that the unwanted and sudden price movements are not controlled by the heating oil delivery companies.

Cost Forecasting

The nice thing about forecasting winter fuel sources, especially oil is that it provides consumers and homeowners a good idea on what to expect, in the process enabling them to prepare to what lies ahead. While it’s not always good news for heating oil, the fact is there is significant progress in the hope of eventually saving more using it, compared to natural gas and propane. As a matter of fact, the EIA says that households using natural gas, propane, and electricity are expected to spend more on their heating expenses for this year compared to those using home heating oil. And yes, prices of heating oil are largely expected to decline.

So while there is fierce competition going on between natural gas and heating oil, we at www.HomeHeatingOilPricesPA.com still recommend the use of the former for the following advantages:

1 – Heating oil is actually safer than natural gas. This type of fuel source for heating your home is not explosive, so there is no danger or risk when there are leaks. Oil will only ignite by using an advanced burning system using a furnace or burner. During leaks, the inhalation of the fumes is not known to be fatal. Gas meanwhile is known to be the deadly one when it comes to both the risk of explosion and inhalation.

home heating2 – And contrary to what most people know, the modern heating oil of today is cleaner compared to what it was about two or three decades ago. Probably the source of the misconception is also the fact that the earlier heating oil was not processed the way it is today. For instance, the sulfur content in oil has been significantly reduced to more than ninety percent, which means the product is also ninety percent cleaner. With this information in hand, homeowners get to realize that natural gas doesn’t have the “cleaner” advantage anymore.

3 – Finally, it can be as bold as it can get, but heating oil is actually more efficient than gas. There is proof that heating oil will burn about fifteen percent more efficient than gas. And because heating oil equipments today are more advanced and sophisticated, they have become a lot more energy and fuel efficient as well.

Anyhow, enough of the comparison; there is an increasing number of proof that heating oil prices will continue to improve in the next winter seasons. While it is true that we all have to deal with the unwanted and unfortunate changes in the price each year, there are still some good and practical ways to cut heating oil costs by doing the little things at home to keep everyone warm.