Connecticut oilheat homeowners have benefited from the sharp decline in heating oil prices over the last few winters. But what’s in store for the future?
The good news is that the same market forces that led to the drop in oil prices are expected to help keep prices close to where they are today. The Energy Information Administration forecasts that heating oil prices will stay low for at least the next 18-24 months and other experts are forecasting continued low prices for the next 7-10 years. That’s because the global oil supply has been increasing at the same time that global demand for oil has slowed. There is more oil available now than at almost any other time in our history. When supply goes up and demand goes down, prices drop.
So what does that all mean? Homeowners who heat their homes with oil can expect continued low prices. And that’s a good thing for everyone!