Facts About The Natural Gas Price Increase
Autumn has reached its end and most people are currently engaged in last-minute preparations for winter. This includes having home heating systems thoroughly inspected to ensure that these units are prepared for the demands that lie ahead.
It’s likely the case that a lot of homeowners are researching heating oil and natural gas prices right now as well. After all, it will be necessary to have a significant amount of fuel on hand in order to enjoy the benefits of continuous heating in the home.
Knowing what you should expect for the coming winter along with the costs of heating fuel will give you a good idea of how much money should be set aside for comfort.
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What You Need To Know About Oil Vs Gas Prices
Every homeowner should set funds aside to ensure easy access to adequate funding for home heating fuel all season long. Sadly, for those using natural gas, there is definitely a lot of market volatility. It appears that the natural gas industry is poised to experience some challenges this coming winter.
Natural Gas – High Demand And A Limited Supply
Due to the fluctuations in natural gas prices, there’s a lot of obvious anxiety within this market. Approximately one week ago, natural gas prices rose by 20 percent, and each year, it rises by 50 percent. Traders have cited some of the many reasons for their jitters.
For one thing, the current supply levels are at a 15-year low. The industry has not been this vulnerable in a very long time. Second, there’s an expected rise in demand as well. Weather forecasters say that this winter is going to be far colder than usual. To combat the significantly lower temperatures, homeowners are probably going to wind up using far more gas.
This demand has also been increased by the unusually warm fall. There were 20 percent more days requiring cooling in September than the regular average. Air conditioners have continued to run during a time when they’re normally at rest. As such, power plants have consumed a lot more gas in order to satisfy the increased energy demand. Nuclear power plants have also experienced outages and shutdowns. Many of these were in the Carolinas when the region was threatened by Hurricane Florence. This single safety precaution resulted in no less than 17 gigawatts of energy loss. This puts pressure on conventional utility companies to increase their absence.
The production of natural gas within the United States is increasing at a very rapid pace. Unfortunately, demand is increasing at an equally rapid rate. Due to this fact, increases in supply are not going to reach the requirement, and this is unlikely to change in the near future. With these factors in place, there is a tentative balance and little to no room for any slack. For those trading within this industry, the bleak weather forecast was the final straw. Earlier models created the expectation for a warm winter and traders were caught off guard by plummeting temperatures. Trading volume increased as investors struggled to make their purchases.
Different Prospects For Those Using Natural Gas
There are different schools of thought concerning future natural gas prices.
Price volatility is viewed as being only a temporary phenomenon. The idea is that the surge in production will gradually outpace demand, especially given that there are new facilities being opened throughout the US in the coming year. Others believe that the yearly growth in production will dissipate over time due to the fading of the various factors that have caused it. With production going slow, the demand will eventually become far more than what the industry is capable of handling. This could lead to major shortages next year and possibly far higher prices.
What Does This Mean If You Heat Your Home With Natural Gas?
This means that every consumer should be prepared in anticipation of a bumpy ride. They should expect to see a notable spike in their monthly bills and should increase their budgets for this expense as necessary. People in the Northeast will probably experience the greatest increases given the severe weather and the current supply levels. Homeowners who plan on switching from heating oil to natural gas should think about canceling these plans given that the future of this market is still so unclear. While this might have seemed like a good choice several months ago, the situation has changed completely. At the current moment, sticking with heating oil is the most cost-effective and prudent choice overall.
Conclusion
Americans are dependent on both natural gas and heating oil, but heating oil is currently the best choice.
It provides better cost-effectiveness, it’s safer, and it does not have a truly negative impact on the environment. To limit your spending on home energy, you can take advantage of high-quality options in discounted fuel oil, which will help you limit the total costs of keeping your home warm.
If you’re currently looking for the best home heating oil companies in your region and want to find the most affordable prices on oil all-around, think about using discount heating oil companies. These providers have great prices and rapid delivery services.
Get in touch with R.F. Ohl today for the most affordable home heating oil in your area. We’re among the most reputable and reliable names within the oil industry and we always have incredible prices on home heating oil. The fuel oil we provide is very high in quality and our delivery services are super fast. Understanding this, you can always trust R.F. Ohl to deliver your fuel in a friendly and entirely professional manner. Click here or call us at (610) 377-1098 to contact us today!