US heating oil bills to rise 21% this winter, EIA says

Investing.com -- American households using heating oil will face bills 21% higher than last winter, the US Energy Information Administration said Tuesday.

Heating oil prices across the country are expected to rise 30% during the winter compared to a year ago. Milder weather in the Northeast will reduce some of the cost increase as homeowners burn less fuel, the EIA said. About 3% of US households primarily use heating oil, with most located in the Northeast.

The price increase comes as diesel costs surge due to the US-Iran war and Ukrainian drone strikes on Russian refineries, which have tightened supplies. Diesel and heating oil prices are closely linked.

In Maine, where the highest proportion of homes use heating oil, fuel prices reached $5.96 per gallon as of September 28, according to the Maine Department of Energy Resources. This represents nearly 80% more than the same period last year.

The EIA projects Brent crude oil will reach $105 per barrel in the fourth quarter, $14 per barrel higher than last month's forecast. Retail diesel prices are expected to stay above $6 per gallon through October before falling to $4.50 per gallon next year.

The agency expects Middle East oil production and exports to gradually increase, with more transits through the Strait of Hormuz and as producers use alternative routes.

Midterm elections that will determine control of Congress are four weeks away. Voter discontent over higher gasoline, electricity and other energy costs is expected to impact the Republican Party's performance.

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