Are Heating Oil Prices Going Up or Down?

Read our most recent update on the increases of oil prices in our blog, “What’s with High Oil Prices Lately?” Residents of New Jersey are most likely feeling the pressure of high oil prices lately. Our new post goes over some of the reasons for the spike in high oil prices and what the foreseeable future looks like.

Residents of New Jersey are most likely bracing themselves for the upcoming winter, not only in preparation of the drop in temperatures but also in expectation of the jump in heating bills that typically occur as a result. Fortunately, there’s some good news – heating costs may not be as high this year as they have been in previous winters.

Heating Oil Prices are Plummeting

The costs of heating oil have plummeted this year, to the point where prices are the lowest that they have been in six years. This could result in New Jersey residents saving hundreds of dollars on their heating bills during the upcoming winter. In fact, these low heating oil prices will benefit Americans throughout the region. This is nowhere as evident as in Massachusetts, where heating oil fell to an average price of $2.49 a gallon towards the end of summer. That’s a drop of over 30 percent from the previous year, and that’s without mentioning the fact that the state Department of Energy Resources announced that heating oil was being sold for as little as $2 a gallon in some parts of the state. According to the Department of Energy Resources, that’s the lowest that heating oil prices have been at the end of the summer season since 2009.

We’ve seen prices drop by comparable amounts in New Jersey as well, meaning if you rely on heating oil to keep your home comfortable, you’ll potentially have hundreds of extra dollars in your pocket this winter.

Why Are Heating Oil Prices Declining?

There are several reasons that petroleum prices have dropped off as much as they have this year. First of all, U.S. oil production is at a record high, whereas the global demand for petroleum has declined due to the slowing economic growth of countries such as China. For a while, many Americans have considered switching from heating oil to natural gas. Natural gas has seen a drastic decline in prices over the last few years and until a few years ago, cost twice as less as heating oil. However, the sharp drop in heating oil prices means that it only runs around 50 percent more than natural gas.

Many analysts believe that if the pattern in heating oil prices continues, families that use around 800 gallons of heating oil during the winter could save upwards of $1,000. Considering how close New Jersey is to Massachusetts, residents can expect to see similar declines. This amount of money is nothing to scoff at – low-income families in particular will benefit from these savings as they can help to offset other household expenses, such as rising rent and electric bills. Families whose budgets aren’t as tight will be able to use those savings towards holiday expenses – something that tends to affect the budgets of most families during the winter season.

Heating Oil in New Jersey

If there’s one thing that New Jersey residents look forward to less during the winter season than the cold temperatures, it’s the high cost of heating. Fortunately, heating oil prices have been dropping drastically throughout the region, which means that residents could be paying much less than usual on their heating costs. For information about local Northern New Jersey heating services, be sure to contact us at Woolley Home Solutions today.