South Jersey Heating Oil Prices
HEATING OIL PRICES RECORD DRAMATIC DECREASE – FORECASTED TO STAY LOW THROUGH THE WINTER.
Cranford, NJ – Heating oil consumers begin the winter 2015-2016 in an advantageous position. According to the Energy Information Administration, prices are 56% lower than they were two years ago, 30% lower than they were a year ago, and are forecast to be lower by this amount throughout the entire winter.
DeGesero continued, “Not only are prices lower at the beginning of this heating season than they have been since 2006, but the product itself has dramatically improved. The sulfur content of heating oil has been reduced by three-quarters since then and will decrease again next year by an astounding 97% from today’s baseline. This decrease is beneficial not only for air quality but for system performance as well. Additionally, much of the heating oil sold today includes a blend of biodiesel, a renewable fuel that reduces heating oil’s carbon intensity dramatically.”
The two primary factors for reduced prices are the increase in domestic production and the increase in product inventory which has resulted. The United States is now the world’s leading petroleum producer. In 2014 production was 35% higher than in 2012 and through the first seven months of 2015 there was an increase of 12% over 2014. Distillate inventories (heating oil and diesel fuel) are 19% higher than they were a year ago.”