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Sunday, October 24, 2021

U.S. Consumers Will Pay More for Energy This Winter, EIA Says

U.S. Consumers Will Pay More for Energy This Winter, EIA Says
© Reuters. U.S. Consumers Will Pay More for Energy This Winter, EIA Says

(Bloomberg) — U.S. consumers face a more expensive winter than last time around, especially those who keep their homes warm with propane or heating oil, the Energy Information Administration said.

Spending on energy for those households primarily using heating oil will rise 43% compared with last winter, the agency said in a preview of its Winter Fuels Outlook that’s due to be published later on Wednesday. 

Expenditure on energy by households reliant on propane will increase 54%, it said. The comparable gains for households mostly using natural gas and electricity are seen at 30% and 6% respectively.

U.S. prices for natural gas and oil are trading close to multi-year highs amid a global squeeze on supplies.

“The main reason wholesale prices of natural gas, crude oil, and petroleum products have risen is that fuel demand has increased from recent lows faster than supply, in part, because of economic recovery after the first year of the Covid-19 pandemic,” the EIA said. “To varying degrees, these increases in wholesale prices are being passed through to consumers.”

 

 

 

©2021 Bloomberg L.P.

Source: Investing.com

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