Surge in Crude Prices Raises Threat of Climbing Heating Oil Prices This Winter
(image: sacbee.com)
It was only a month ago when analysts were assuring heating oil customers that they’d get off cheap this winter, relative to the 2008-2009 season. The price of crude looked to remain low, stabilized by low demand and massive stockpiles.
Over the past couple of weeks, though, the recovering economy and optimism in equities has sparked confidence, leading to a somewhat unforeseen surge in oil prices, according to a news roundup from DailyFinance.com.
The price of crude topped $80 a barrel this week. If the price of oil stabilizes here or rises going into the winter season, it won’t look good for heating oil customers who were hoping to catch a break this year.
But will that price hold? Many analysts don’t thing so, especially given the still-healthy supply. Even OPEC thinks prices are too high. Price declines may be more likely.
Michael Lynch, president of Strategic Energy & Economic Research told the AP, “There’s so much oil out there that people are going to start using it for their pancakes.”
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