Heating Oil and Natural Gas Prices Surge Amid Forecast of Wintry Weather

Strategic Insights -

Temperatures in the Midwest are expected to drop 15 to 20 degrees Fahrenheit below normal, while the Northeast could see temperatures fall almost 10 degrees below average. This forecast has led to a surge in heating oil and natural gas prices on the New York Mercantile Exchange. Heating oil prices rose to 50.59 cents a gallon, the highest price since September 19, while natural gas prices surged to $1.85 for 1,000 cubic feet, the highest since October 2.

Key Takeaways:

  • Heating oil prices rose 0.25 cent to 50.59 cents a gallon, the highest price since September 19.
  • December natural gas prices rose 1.1 cents to $1.85 for 1,000 cubic feet, the highest since October 2.
  • Natural gas prices have surged 8 percent in the last 10 days.
  • Temperatures in the Midwest are expected to drop 15 to 20 degrees Fahrenheit below normal by next weekend.
  • The Northeast could see temperatures fall almost 10 degrees below average.
  • November soybean prices rose 6.75 cents to $6.7025 a bushel, approaching their highest level in 16 months.
  • The Commodity Research Bureau index of 21 commodities gained 0.55 point to 242.00.

Statistics:

  • November heating oil price: 50.59 cents a gallon
  • December natural gas price: $1.85 for 1,000 cubic feet
  • Percentage increase in natural gas prices in the last 10 days: 8%
  • Barrel price of December crude oil: $17.62
  • Gallon price of November unleaded gasoline: 50.74 cents
  • Bushels of soybeans inspected for export last week: 32.3 million
  • Percentage supply of natural gas inventories below last year's levels: 5.2%

Sources:

  • Smith Barney Inc. forecasts
  • The Commodity Research Bureau index of 21 commodities
  • GSC Energy Corporation
  • American Petroleum Institute
  • Agriculture Department