Increased heating oil supply this winter led to falling prices
Just this past winter, we saw heating oil prices fall dramatically. Even though demand for heating oil was higher than normal due to the colder winter, prices fell. Why? Because supplies for heating oil (and all petroleum) were very strong. The United States had more oil than the demand called for. So prices fell. This was good news for NJ homeowners and good news for NJ fuel dealers as well.
What about natural gas supplies?
As we look ahead, there are signs that natural gas supplies will be squeezed. According to a recent article in The Examiner, the United States is preparing to begin exporting massive amounts of natural gas overseas. When supply decreases and demand stays the same, prices typically increase. If demand increases, prices typically spike. This does not bode well for New Jersey homeowners who heat their home with natural gas.
To read more about natural gas exports and the expected decrease in domestic supply, click here.