2013 Heating Oil Price Outlook

Watch our latest TV interview feature Steve Ohl, President of R.F. Ohl.

As temperatures begin to drop to welcome the winter this year keeping your home warm can be costly. Even if there are so many different ways to keep the family protected and safe from the outside weather, those ways will most likely lead to higher energy bills and expenses. Some homeowners are acquiescing to the notion that they all have to spend a bit more for the winter.
A report from the Energy Information Administration that was recently released revealed that fuel prices for this year are a mix of good and bad news. Of all the fuel sources intended to heat your home, there is certainty that oil has become the most cost-efficient for the winter. The main reason for that is because only six percent of homeowners actually use it and they mainly reside in the northeastern part of the U.S.

In the northeast, temperatures are expected to be colder than the rest of the country. It is even projected to the colder compared to what it was last year. As a result, homeowners in Lehighton PA and other areas will have to reach deeper into their pockets just to keep themselves warm, comfortable, and sane in the process. But if you are using heating oil to heat your home, then you are in right side of the battle. You actually catch a break by using oil this year. Just like any other fuel source for heating, it is always good news to hear if oil prices go down.

According to Steve Ohl of R.F. Ohl Lehighton PA, the average homeowner will spend a bit over $2000 annually in order to effectively heat their homes using oil. As of the moment, the price of oil is actually holding steadily, specifically at $3.69 per gallon. And what’s even better news is that the prices are actually down significantly compared to what they were a year ago. Steve further said that when a homeowner figures out that they can save anywhere from two to five percent based on the EIA projections for the entire course of the winter season, it always feels like a giveback to the usual amounts homeowners are spending in the previous years. The thing is at least the prices aren’t going up.
Only a small portion of homeowners use heating oil and natural gas accounts for more than half of the rest. According to EIA’s winter fuels outlook, for the first time in two years, consumers will expect a significant rise in natural gas prices. Natural gas prices are in fact expected to rise up to fourteen percent because the levels of supply have reached a historical low. As a result of the pressure in the rise of natural gas prices, heating oil will eventually get lower price projections. It’s more of a direct effect.

Those who use propane on the other hand will see a nine percent increase based on the same report while those who rely on electricity for heating their homes will see about two percent increase in their consumption and expenses. But even if the prices of fuel sources last year were consistent, price spikes and changes can actually happen anytime without warning. For instance, there can be minor issues that will affect the prices but they mostly depend on what happens to the rest of the world, especially oil producing countries.

Meanwhile, experts contend that it is practical to grab plans that will allow the homeowners to pay a monthly fee, which in turns serves as a cap or some form of security. In this instance, if the prices go down, the homeowner gets the reduction, and when it goes up, they only have to pay for the price they were only capped up for. This is basically saying that it is much better to plan and purchase oil well ahead of time, especially with the fact that they are priced lower compared to the period where the demand for it rises considerably.