Heating oil prices fall as crude oil market rally falters
The Governor’s Energy Office’s latest weekly heating fuel price survey found the current statewide average cash price for No. 2 heating oil was $1.91 per gallon, two cents lower than a month ago. Average statewide kerosene prices followed the same trend, with this week’s price at $2.44 per gallon, one cent lower than a few weeks ago. Propane prices have also declined over the last month, currently three cents lower at $2.16 per gallon.
The price rally observed in crude oil markets over the last several months has faltered, and prices have dipped 10% since June, according to Bloomberg News.
U.S. crude oil inventories, while lower than they were a few months ago, remain significantly above the five year range, Bloomberg reported.
The news organization also reported that gasoline inventories are at an all-time seasonal high and that supplies of refined products have increased, which also has a dampening effect on prices of all products. Even an attempted coup in Turkey has not created enough uncertainty about disruptions in the market to increase crude prices.
Using this week’s average heating oil price ($1.91), and converting to a common heating unit value (million Btu), the price of fuel oil is $13.77. This compares with an equivalent heating unit value for natural gas of $11.82 (at $1.18/therm); propane, $23.65 (at $2.16/gallon); kerosene $18.07 (at $2.44/gallon); wood pellets, $15.58 (at $258/ton); cord wood, $11.36 (at $250/cord) and electricity (electric baseboard), $38.10 to $55.69 (at 13-19 cents per kwh).
The price for heating oil is a statewide average; prices in a given geographic region of the state may be considerably higher or lower than this average.
This week, within the Energy Office sample, the highest heating oil price ($2.19) was found in one region in the state, and the lowest heating oil price ($1.70) was found in three regions. Also, the statewide average price for propane is based on consumption of at least 900 gallons a year. Households using propane just for cooking or hot water generally pay a higher per gallon price.
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Maine heating fuel survey shows steady prices
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