Slide 9 of 15
Notes:
Using the Northeast as a regional focus for heating oil, the typical oil-heated household consumes about 680 gallons of oil during the winter, assuming that weather is “normal.”
The previous three winters were warmer than average and generated below normal consumption rates. Last winter, consumers saw large increases over the very low heating oil prices seen during the winter of 1998-1999 but, outside of the cold period in late January/early February they saw relatively low consumption rates due to generally warm weather.
Even without particularly sharp cold weather events this winter, we think consumers are likely to see higher average heating oil prices than were seen last winter.
If weather is normal, our projections imply New England heating oil customers would be expected to pay about $140 more this winter for heat than last year.
