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Released: September 16, 2004
Consumers will spend more to heat their homes this winter
Homeowners will pay much more this winter to heat their homes, according to the latest Heating Usage report released today by the Energy Minister. It predicts an 8% increase in spending over last winter.
Increases in prices for heating fuel are likely to generate higher spending, even in regions where demand for fuel is expected to fall. Average residential prices for natural gas are expected to be 10% higher than last winter, while household spending is expected to rise by 15%.
Tight global markets and elevated crude oil prices are expected to result in higher prices for petroleum products. The cost of imported crude oil to refineries this winter is projected to average 98 cents per gallon (about $40 dollars per barrel), compared with 70 cents per gallon last year.
Despite above-average stocks of natural gas, average winter natural gas prices, both at the wellhead and retail levels, are expected to be above those of last winter.
Other interesting findings from this report:
- The spot price for crude oil continues to fluctuate. Prices continue to remain high even though the Organization of Petroleum Exporting Countries (OPEC) production of crude oil reached its highest levels in September since OPEC was established in 1982.
- Overall petroleum inventories are expected to be in the normal range.