Summer is almost over and the price of heating oil is on the rise. Fuels analyst Harold Hommes says heating oil is one of the products that’s impacted by world oil demand.
Hommes says the price of heating oil is tied to oil and there’s been a “general tightening of distillate market.” While heating oil prices are up, Hommes says the prices on natural gas and propane are falling.
Hommes says most people notice the issue in higher gasoline prices, but he says the thing to watch this fall is the impact on diesel prices. Hommes says there are a couple of factors involved.
“Turnarounds in the industry, the industry calls those basically shutdowns for improvements, upgrades to their facilities. Some of that is going on right now causing prices to bump up a little bit on both gasoline and diesel,” Hommes explains. He says refineries are also starting to switch over to winter blends, which impacts the price.
The increase in heating oil may not have as big an impact on Nebraskans, but many still use it for heat.
“Natural gas is clearly the product of choice…for most of us. Heating oil is still a very common and much in demand product, certainly out East. And certainly here even in the Midwest to a lesser extent,” according to Hommes.
The good news in heating fuels continues to be the lower cost of natural gas and propane.
“We’re still staying at near decade lows on the natural gas side. Propane seems to have fallen considerably since a month ago,” Hommes says.