HVAC Breaking News

Aug. 18, 2008: Expect Only Short-Term Relief in Fuel Prices, Says EIA

August 18, 2008
/ Print / Reprints /
ShareMore
/ Text Size+

WASHINGTON - Gasoline and diesel fuel prices have been falling slowly since July 14, and the U.S. Department of Energy’s (DOE’s) Energy Information Administration (EIA) expects that trend to continue over the next few months, but the longer-term outlook is for increased fuel prices.

The EIA’s Short-Term Energy Outlook notes that gasoline and diesel fuel prices are following the trend in crude oil prices, which peaked at $145 per barrel on July 3 before sliding to less than $120 per barrel by early August. For the year as a whole, the EIA expects crude oil prices to average $119 per barrel, but next year, crude oil prices will reach a higher average price of $124 per barrel. Likewise, regular-grade gasoline and diesel fuel prices will average $3.65 per gallon and $4.18 per gallon this year, respectively, but will rise to an average of $3.82 per gallon and $4.27 per gallon in 2009.

With some relief for the cost of driving and fall approaching, it’s time to start looking at the cost of heating homes this winter. The good news is that a massive increase in domestic natural gas production has stopped the march toward higher prices, with the spot price in July averaging $11.45 per thousand cubic feet (Mcf) of natural gas, down $1.62 per Mcf from June’s average price. The EIA now projects average spot prices of $10 per Mcf in 2008 and $9 per Mcf in 2009. But this still translates to average residential natural gas prices of $15.58 per Mcf this winter, a 22 percent increase over last winter’s average price. The news is even worse for those using fuel oil for heating, with a projected average price of $4.34 per gallon, a 31 percent increase over last year’s average price. Electricity prices are also on the increase, with a projected 5 percent increase in 2008 and a 10 percent increase in 2009.

Publication date: 08/18/2008

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

2014 MCAA Annual Convention

Scenes from the 2014 MCAA Annual Convention in Scottsdale, Ariz.

Podcasts

NEWSmakers: Julian Scadden

Training is an ongoing process. Julian will discuss how you can generate maximum return on time and energy invested training by following a three part process. Listen to this podcast to get expert tips on training, tracking and follow up. 

More Podcasts

ACHRNEWS

NEWS 04-21-14 cover

2014 April 21

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

SERVICE CALLS POLL

Which statement on service calls best applies to your business?
View Results Poll Archive

HVACR INDUSTRY STORE

plumbing-hvac.gif
2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

 

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

DON'T MISS A THING

Magazine image
 
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.

STAY CONNECTED

facebook icontwitter iconyoutube iconLinkedIn i con