With high oil prices pushing up inflation, driving up travel and cooling costs this summer, and now with colder weather, the Federal Energy Information Administration (EIA) says heating this winter will be less expensive due to higher prices for natural gas, heating oil, propane and electricity. Fees will be more expensive than last year.
EIA experts predict that the average home heating with natural gas will cost an average of $931 from October this year to March next year, up 28 percent from a year ago. If the weather is cold, natural gas heating bills will be 51% higher than last year, and even mild winters will be 29% higher than last year. Nearly half of all households in the country use natural gas for heating.
Oil-heated homes will cost 27 per cent more than last year, while propane and electric heating will cost 5 per cent and 10 per cent more, respectively. Oil heating is mainly distributed in the Northeast, while propane heating is more common in rural areas.
‘Most households will have a higher heating bill this winter than last year, and even higher if it’s cold,’ EIA Director Joseph DeCarolis said.
The cold weather will put more pressure on the energy market. Although energy prices have now fallen from their summer highs, energy costs, as reflected in the inflation rate in September, were still 19.8% higher than a year earlier, less than the year-on-year increase in June. Half, the slowest increase since March 2021 and a major factor behind the drop in inflation in August.
The weather service expects much of the country to be colder this winter than last year, and while the Southwest and the Atlantic coast may not be as cold, the National Oceanic and Atmospheric Administration (NOAA) believes that the colder regions of the country will be colder this year, and here It is also a major consumer of heating fuel, which will push up energy demand across the country in winter.
Natural gas futures in August surpassed 10 yuan per BTU unit, reaching a new high in the shale gas era, while natural gas reserves are 12% below normal levels. High coal prices have led to record levels of natural gas used in power plants across the country, and Europe’s demand for liquefied natural gas (LNG) has remained unmet after Russia’s invasion of Ukraine.
But natural gas prices have fallen by about a third since August, as a fire at a Texas LNG terminal in June cut LNG exports by nearly a sixth, leaving much of the gas unloaded into inventories. The U.S. has stored the most natural gas since the shale-gas era in the past month, according to the EIA.
But companies inject natural gas into underground storage mainly to sell high prices in winter. Analysts believe that the current natural gas storage is still low, and if the weather is colder, the price will soar. Natural gas futures are now at $6.453 per BTU unit, 19% more than a year ago despite an eight-week losing streak.
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