EIA Expects Heating Bills In The U.S. To Be Lower This Winter

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The Energy Information Administration released its October "Short-Term Energy Outlook" Tuesday, predicting that heating bills for the U.S. will be lower during the winter months than they were last year.

"We expect household bills for space-heating fuels will be 8 percent lower than a year ago, with the average household spending $960 in the October through March winter heating season, a decrease of $84 from last winter," said EIA Administrator Richard Newell.

"The lower bills primarily reflect lower fuel prices, although slightly milder weather than last winter will also contribute to less fuel use in many areas," Newell added. "We expect the largest decreases in fuel expenses in households using natural gas and propane."

According to the EIA, the lower 48 states should be 1% warmer from October to March than they were last winter. They should also be 1% warmer than the 30-year average (1971-2000).

The EIA also expects natural gas inventories to set a new record high at the end of this year's gas injection season (October 31), reaching over 3.8 trillion cubic feet.

Further, the EIA expects the Henry Hub spot price to average $4.31 per thousand cubic feet (Mcf) this winter, down from $5.66 per Mcf last winter.

Finally, the EIA predicts that the price of West Texas Intermediate (WTI) crude oil will average about $70 per barrel this winter, a $19 increase compared with last winter.

The forecast for average WTI prices rises gradually to about $75 per barrel by December 2010 as U.S. and world economic conditions improve.

The Energy Information Administration released its October "Short-Term Energy Outlook" Tuesday, predicting that heating bills for the U.S. will be lower during the winter months than they were last year. "We expect household bills for space-heating fuels will be 8 percent lower than a year ago, with the average household spending $960 in the October through March winter heating season, a decrease of $84 from last winter," said EIA Administrator Richard Newell. (Market News Provided by RTTNews)