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Propane and heating oil hit record-highs

The U.S. Energy Information Administration (EIA) says propane and heating oil prices hit record-highs in the last week. EIA’s “This Week in Petroleum” report states: The average residential propane price jumped by $1.05 per gallon last week to $4.01 per gallon, almost $1.72 per gallon higher than the same period last year. This is the largest single weekly increase since the survey began in 1990. Ten states (all located in the Midwest) in the residential propane survey had price increases of 97 cents per gallon or more during the week ending January 27, 2014. Wholesale propane prices increased by $1.43 per gallon to nearly $3.55 per gallon as of January 27, 2014.”

U.S. propane stocks fell by 3.6 million barrels to end at 31.7 million barrels last week, 25.8 million barrels (44.9%) lower than a year ago. Midwest and Gulf Coast inventories both decreased by 1.4 million barrels. East Coast inventories dropped by 0.6 million barrels and Rocky Mountain/West Coast inventories decreased by 0.2 million barrels.

Residential heating oil prices increased 12 cents per gallon to reach a price of nearly $4.18 per gallon during the period ending January 27, 2014. This is 13 cents per gallon higher than last year’s price at this time. Wholesale heating oil prices increased by more than 18 cents per gallon last week to $3.39 per gallon. Demand for heating oil is outpacing supply during January, drawing down stocks. EIA says along with the increased demand caused by the bitter cold weather, some commercial, industrial and electricity generating companies which normally burn natural gas under interruptible contracts switched to oil as their gas suppliers exercised their option to fill firm contracts.

The U.S. average retail price of regular gasoline decreased less than one cent to remain at $3.30 per gallon as of January 27, 2014, six cents lower than last year at this time

The national average diesel fuel price was up three cents to $3.90 per gallon, two cents lower than last year at this time.