• 7 hours Saudi Fund Buys Stake in Hollywood Talent Agency
  • 3 hours Country With Biggest Oil Reserves Biggest Threat to World Economy
  • 12 hours Putin Is A New Russian Stalin - Victory For The Next 6 Years
  • 3 days Russian hackers targeted American energy grid
  • 3 days Is $71 As Good As It Gets For Oil Bulls This Year?
  • 7 hours G20 Rejects Calls for Cryptocurrency Regulation
  • 4 hours Trump Bans Venezuelan National Cryptocurrency
  • 2 hours Self-Driving Cars' First Fatality
  • 3 days Oil Boom Will Help Ghana To Be One Of The Fastest Growing¨Economies By 2018!
  • 3 hours Is Trump Harming Oil Industry?
  • 6 hours Volkswagen To Announce $340 Million Tennessee Investment To Build New SUV For U.S. Market
  • 7 hours Africa Is The New Land Of Opportunity For Investors
  • 11 hours Miners against Government: Largest Miners In Congo Quit Chamber Of Commerce Amid Growing Tax Dispute
  • 3 days HAPPY RIG COUNT DAY!!
  • 3 days Spotify to file $1 billion IPO
  • 3 hours Tillerson just sacked ... how will market react?
China Now Produces More Oil Abroad Than At Home

China Now Produces More Oil Abroad Than At Home

China now produces more oil…

Post Tillerson: Is The Iran Nuclear Deal At Risk?

Post Tillerson: Is The Iran Nuclear Deal At Risk?

President Trump’s move to replace…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Heating Bills Reach Record for New Yorkers

Cold weather continues to plague U.S. consumers with high costs for heating. The Northeast in particular has been hit hard. Metropolitan New York is now paying record prices for natural gas and heating oil. For the week ending January 31, East Cost stockpiles of distillates, which include heating oil and diesel, dropped to their lowest levels since 1990, according to new EIA data.

Many residential consumers in the Northeast still use heating oil to keep their homes warm in the winter. But the weeks-long cold snap (January was the coldest January in the U.S since 1994) has drained inventories and pushed up prices. EIA estimated that heating oil would average $3.77 per gallon this winter, but recent data from New York suggests pries are surpassing $4.50 per gallon. Refinery outages in the Philadelphia area, down for maintenance, have also increased prices.

Related Article: Why Current Solutions to Solving our Energy Problems Won’t Work

The problem is compounded by the shortage of natural gas supplies, forcing many to scramble for heating oil as a replacement. Some customers have “interruptible” contracts, allowing suppliers to cut them off when they are in a pinch. Infrastructure bottlenecks, combined with high demand, led to Consolidated Edison, the local utility, to restrict gas deliveries to these customers to conserve supplies. This decision will force many to look for heating oil as an alternative, in turn pushing up heating oil prices even further. The problem would have been much worse had New York not recently completed gas pipeline connections into the city.

With yet another snow storm brewing, for the East Coast, there isn’t light at the end of the tunnel for New York and New England. The forecast is unclear at this point, but cold temperatures are almost certain, so the strain on energy supplies will continue.

By James Burgess

Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News