Cost of Home Heating Expected to Drop

The cost of home heating is expected to drop this winter which is a pleasant surprise for many home owners. Energy providers across the United States have announced that they expect energy prices to drop for the winter of 2009-2010, possibly as much as 25% lower. This means home heating will be more affordable and you could save $50 or more on your monthly bills. Propane and electricity are expected to drop in price as well with Propane slated to be at the lowest price. There are three main reasons for the expected reduction in home heating costs. They include an increased supply of natural gas, lower demand and warm winter weather forecasts.

There is an increased supply of natural gas in the United States. Specifically, the inventory supply for natural gas is sitting at a record high level. In addition, gas and oil prices are expected to go down in the coming months resulting cheap heating oil prices for home owners. Therefore, those that use natural gas to heat their homes, about half of American households can look forward to a savings of about 12% on their home heating bills this coming winter.

The increased supply and lower demand the are expected to drive down home heating oil costs are the result of a few predicted factors. Firstly, the weather forecast for many places is expected to be much warmer than usual. Warmer weather means less demand on the increased fuel supply which will lower prices. In addition, the recession will have an impact as well. People will be lowering the thermostat to save money or looking at ways to heat their homes in a cost efficient way. Again, large supply and low demand will result in lower prices.

It is however impossible to predict exactly how much you will save since contributing factors have many variables. The weather in your locale will determine how much heat you will need to use. In addition, the efficiency of the system you use to heat your home along with the number of people in your household will impact your home heating cost this winter.