• Temperatures east of the Rocky
Mountains have been significantly
colder this winter (October-February)
compared with the same period both
last winter and the average for the past
10 years, straining distribution net-
works and putting upward pressure on
consumption and prices of fuels used
for space heating. U.S. average heat-
ing degree days were 13% higher than
last winter (indicating colder weather)
and 10% above the October through
February 10-year average. The Northeast
was 13% colder than last winter, the
Midwest and South both 19% colder,
while the West was 5% warmer.
• The cold weather this winter had the
greatest effect on propane prices, par-
ticularly for consumers in the Midwest.
Cold temperatures have tightened sup-
plies that were already low heading into
the winter heating season. Residential
propane prices in the Midwest rose
from an average of $2.08 per gallon
(gal) on December 2, 2013, to $4.20/gal
on January 27; prices have since fallen
back to $2.78/gal as of March 3. EIA
now expects that propane prices in the
Midwest will average $2.62/gal over the
winter (51% higher than last winter)
while those in the Northeast will average
$3.47/gal (15% higher than last winter).
• Cold temperatures have continued
to tighten heating oil supplies and helped
drive up retail prices. Since the beginning
of the year, distillate inventories in the
Northeast (Petroleum Administration
for Defense Districts 1A and 1B) have
fallen by almost 6.9 million barrels to
reach 18.3 million barrels on February
28, 6.4 million barrels below inven-
tory levels for the same week in 2013.
Weekly U.S. residential heating oil prices
increased by $0.20/gal during January
and have averaged near $4.24/gal since
the beginning of February. Despite the
recent increases, EIA expects that U.S.
heating oil prices will average $3.83/gal
this winter, $0.04/gal (1%) lower than
during last year's winter heating sea-
son, mainly because of lower crude oil
prices.
• The North Sea Brent crude oil spot
price in February averaged near $110/
barrel (bbl) for the eighth consecutive
www.fueloilnews.com | FUEL OIL NEWS | AprIL 2014 13
EIA N e w s
Short-Term Energy Outlook Highlights
Release Date: March 11, 2014
