Heating Oil Prices Soar Amid Global Supply Disruptions

The National Energy Assistance Directors Association has projected that over four million US households relying on heating oil will spend 50% more on heating this winter, compared to last year.

This is the second time this year that NEADA has increased its estimate for heating oil costs. In early September, they projected a 31% rise in costs. Last winter, households spent an average of $1,749 to heat their homes with heating oil, but this winter's estimate is $2,627, which is about $878 more.

The increase in energy costs will vary by region. Families in the Mid-Atlantic could spend $779 more than last year, while families in the Northeast could spend more than $1,000 more. Vermont and Maine are projected to see the sharpest increase in the Northeast, with heating oil costs in both states rising by 77% from the prior winter.

The rise in heating oil costs comes as conflict in the Middle East continues to disrupt global oil supplies. Prior to the US-Iran conflict, a barrel of Brent Crude oil was trading at approximately $72. Now, it costs more than $100 as shipping through the Strait of Hormuz remains limited.