U.S. Increases Forecast for Winter Heating Oil Demand, Price

The Energy Department increased its estimate of what U.S. households heating primarily with oil will spend this winter.

Households will pay an average of about $2,544 for heating oil between Oct. 1 and March 31. That’s 22 percent higher than last winter as a result of a 3.1 percent increase in prices and an 18 percent jump in consumption. The department projected in the November forecast that spending would rise 21 percent to an average of about $2,526, as prices gain 3.3 percent and consumption increases 17 percent.

About 6 percent of U.S. households depend on heating oil for space heating. The Northeast accounts for about 80 percent of these households.lowered its estimate for gasoline demand in 2012 and decreased its forecast for prices at the pump.

Gasoline consumption will average 8.73 million barrels a day, down from 8.75 million in 2011, the Energy Department’s Energy Information Administration said today in its monthly Short-Term Energy Outlook. Last month’s projection was 8.73 million barrels.

The department estimated 2013 consumption at 8.74 million barrels a day, up from the November forecast of 8.73 million.

Regular-grade gasoline will average $3.63 a gallon this year, lower than $3.64 estimated in last month’s forecast. Prices may average $3.43 in 2013, lower than the previous estimate of $3.44.

Distillate demand, including heating oil and diesel, will fall to 3.77 million barrels a day this year, down from the November forecast of 3.78 million barrels daily. Consumption next year is estimated to be 3.82 million barrels daily, lower than last month’s outlook of 3.84 million barrels.

Total U.S. fuel demand may fall to 18.64 million barrels a day this year, down from November’s outlook of 18.66 million.

To contact the reporter on this story: Barbara J Powell in Dallas at bpowell4@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.