Retail home heating oil prices in the U.S. rose sharply as the winter heating season (October-March) took off. Prices later set a new high in November. However, this trend has since reversed due to falling crude costs, unseasonably warm weather, and growing distillate stock levels.

National Home Heating Oil Price Average

On October 3, 2022, the national average price of home heating oil began at a remarkable $4.73 per gallon. It then unexpectedly rose to an all-time high of $5.93 per gallon by November 7 due to dwindling stockpiles in the U.S. and Atlantic Basin areas. The figure had been the highest price since data was collected in 1990. But prices have gone back down 25 per cent from that peak as of February 6, 2023. The prices are now only $4.47 per gallon for homeowners' peace of mind this winter season.

Lower Demand

The National Oceanic and Atmospheric Administration (NOAA) weekly data showed warmer-than-normal temperatures have drastically decreased heating demand. From July 2022 to February 2023, there were 8 per cent fewer heating degree days than usual. And it looks like the trend continued into February and March as NOAA's monthly total degree day forecast indicates mild weather for those months.

Lower Crude Oil Prices

On November 7, 2022, Brent crude oil prices hit an all-time high of $100 per barrel. By January 4, 2023, the price had dropped dramatically to $75 per barrel. The decline significantly affected heating oil prices. Since then, there has been some upward movement, and on February 6, it reached an impressive $80 per barrel. However, the price is still lower than earlier in the winter season.

Lower Decline of Inventory

Even though distillate inventories in the Northeast continue to decrease, the rate of decline is slow. The Northeast region has by far the most households using home heating oil as their primary source of warmth. From September 2 to October 28, distillates decreased by 1.8 million barrels—only half of what occurs typically over these five years between 2017 and 2021, where it averages 3.9 million barrels.

About Hollowell Heating

Hollowell Heating is committed to delivering trustworthy, top-notch heating services across the North West. The company is proud of its accomplished craftsmanship, which has resulted in many gratified customers throughout this region. Undertaking all work with utmost care and consideration for its clients’ homes, the company has an expert team of Gas Safe certified to ensure nothing less than perfect results each time.

Visit https://www.hollowell-heating.co.uk/ for more information.