Heating Oil Prices Soar 113% as US Homes Face Higher Bills

Heating oil prices have skyrocketed in the US, reaching $4.79 per gallon on September 29th at New York Harbor, a 113% increase from last year. This means that homeowners who rely on heating oil to warm their homes are facing significantly higher costs. For example, a home burning 700 gallons of fuel would cost around $3,352 in wholesale prices before markup.

David Kang, a former treasury and risk management expert at Qatar Airways, attributed the price increase to Russia's diesel export ban, which has left Europe short on supply. He also noted that Washington's talk of an export ban on US diesel has actually driven down heating oil prices instead of pushing them up.

Kang warned that locking in a fixed price for heating oil can be a bad idea, as it may result in overpaying if prices fall back to their average levels. Instead, he suggested splitting fuel purchases between locked-in and market-based rates to hedge against potential price spikes or drops.