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Propane and Heating Oil Prices in New England and Atlantic Canada: Where Are They Headed?

The price of propane and heating oil in New England and Atlantic Canada has risen to their highest levels since 2008. In previous posts we’ve explored the factors which affect the price of propane and heating oil. While it’s good to know what makes prices go up, the real questions on everyone’s mind is “where are heating fuel prices headed and when will home owners see relief to their pockets”?

The EIA (Energy Information Administration) is an expert and balanced source of information for all things energy related. The EIA’s short term energy outlook forecasts the price for crude oil, heating oil, propane, and diesel to remain close to current levels for the next year. However, they indicate that a number of factors could push prices up or down 20% in the next year.

Goldman Sachs, an investment company in the US, warned on April 12 that crude oil prices are due for a “substantial pullback”. Their chief energy analyst believes global supplies are enough to meet demand and that this will mean a drop in crude oil prices.

What could push prices higher or lower?

Higher Prices

Lower Prices

  • Continued unrest in the Middle East
  • Higher  than expected world economic growth
  • A weaker US dollar (i.e. from continued fiscal issues)
  • Increased output of crude from OPEC countries
  • Lower than expected world economic growth
  • A stronger US dollar

If your head is swimming, we understand. With all this uncertainty, what should a consumer do? First, consumers should know that no one can accurately predict where prices are headed. Second, the best way to save is to simply try to use less, and here are 10 energy savings tips to help. Last, if knowing what your price for heating oil or propane will be this winter will help your budgeting or help you sleep better at night, then locking in may be right for you.

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