Heating Oil

Refiners make heating oil from crude oil, which is also the raw material for other petroleum products such as gasoline and jet fuel.

Approximately seven percent of American households - some 8.5 million in total, with nearly one-third in the Northeastern states - rely on heating oil to keep warm in winter. Late summer is a good time for consumers to further winterize their homes to help reduce fuel use (and save money) and to explore options for purchasing winter supplies, including seasonal contracts with heating oil companies that may offer price advantages.

API Heating Oil Update
Heating oil prices are linked to crude oil prices. Crude oil is the source of a number of important fuels, including gasoline, heating oil and diesel. Because these fuels all have the same starting point, refineries must decide what to produce when, based on a mix of supply and demand calculations. The price a refiner pays for crude oil is the chief factor determining the cost of home heating oil to the consumer. See the most recent crude and heating oil monthly price chart below.

Crude Oil and Heating Oil Prices
Size: 64 KB | Date: January 22, 2010 | License: Free

Heating oil supplies
As the weather grows colder, refineries manufacture most (about 90%) of the heating oil consumers need, but they also draw on supplies produced earlier in the year.

Northeast Heating Oil Reserve
Maximum inventory of heating oil in the reserve will be two million barrels. The Department of Energy believes that a two-million-barrel reserve will provide relief from weather-related shortages for approximately ten days, which is the time for ships to bring heating oil from the Gulf of Mexico to New York Harbor. See EIA's information on the Northeast Heating Oil Reserve.

Consumers and heating oil
Ever wonder where heating oil comes from? Or why prices fluctuate? Or even how you can help to lower your heating oil bills? Residential Heating Oil Prices: What Consumers Should Know by the U.S. Department of Energy helps answer some of those questions.

Help paying heating bills
You may be able to get financial aid to help pay your heating bills this winter. The federal LIHEAP program (Low Income Home Energy Assistance Program) gives money to states to help qualifying families pay their heating bills.