Buffalo, NY (WBEN) Higher oil prices aren't just affecting you at the pump. One expert says this will affect how much you pay to keep your home warm this winter.
"if you fuel with home heating oil, it's probably going to be a pricey winter, and you may certainly want to set aside and budget more tube socks back on the holiday Christmas list, sweaters, bundle up," says Patrick DeHaan of Gas Buddy. He says home heating oil prices could reach $7 a gallon this winter.
DeHaan says that estimate is conservative in light of all the new developments. "New Houthi attacks in the Red Sea, new escalations between the U.S. and Iran, and a White House that says prices will go down after the midterms suggests that the White House is not prepared to act on on on helping ease this burden, and so it's likely that diesel prices could continue to climb," says DeHaan. He says the wholesale price of diesel went up another 24 to 30 cents a gallon Thurdsay on these developments,. "The problem seems to be somewhat ignored. And gasoline prices, along with it, so any any petroleum, whether it's diesel, heating oil, jet fuel, or gasoline, we're getting it from every angle, and the ripple effect too is, you fill your gas tank up with more expensive gasoline, your home heating bill goes up, but also your grocery bill," says DeHaan.
DeHaan says if you use natural gas, the pain won't be as severe. "Natural gas prices have a completely different set of inputs, data centers and electric consumption are driving a bit of an elevated natural gas price environment. But my goodness, natural gas is probably going to be a savior compared to home heating oil this winter," explains DeHaan. "You could be paying quadruple or more for your home heating oil bill this this winter compared to natural gas. So it's not like a lot of folks have options, but if you do, natural gas and and propane look like they may escape compared to compared to home heating oil."
DeHaan says a record El Nino is forecast, and that could also provide a big break, "I certainly look at the Climate Prediction Center, and so far, there is no area of the country that, looking at a three-month outlook, that is below showing below-average temperatures. The latest CPC graphic issued August 20, so a couple of weeks ago, it looks out to September, October, November, shows basically the entirety of New York State and New England being one shade above average in terms of of the chances for above normal temperatures," says DeHaan. "Beyond that, models show it could be a record-setting El Nino. Generally, that can lead to warmer winter weather conditions. When you're talking about so many issues impacting home heating oil prices. This could deliver a much warmer winter than average, which of course would then potentially reduce consumption of home heating oil in a significant way, and that in and of itself, you know, could partially balance the drop in distillate and diesel and heating oil supplies from Russia."
Oil prices topped $100 a barrel Thursday.
A record El Nino forecast could balance out higher oil prices
A record El Nino forecast could balance out higher oil prices
