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Arctic Blast Fuels Connecticut Heating Oil Crisis
15 Feb
Summary
- Heating oil prices rose 15.5% in Connecticut by Feb. 9.
- Harsh winter conditions make deliveries difficult and increase demand.
- Geopolitical tensions raise concerns about potential supply disruptions.
Connecticut is grappling with a sharp increase in home heating oil prices, with the average cost per gallon reaching $4.083 as of February 9th, a 15.5% jump from late December. This surge contrasts with a more than 40% decrease in crude oil barrel prices. The dramatic rise is attributed to a "perfect storm" of factors.
The state has endured a prolonged period of arctic air and significant snowfall, making deliveries challenging and increasing demand for heating oil, natural gas, and electricity. Some delivery attempts have required extreme measures, such as snaking hoses through homes, due to impassable snowbanks.
Industry experts explain that increased demand, driven by the harsh weather, naturally raises prices according to basic economics. This situation is compounded by escalating geopolitical tensions in the Middle East, which are heightening worries about potential supply disruptions.
Despite the price hikes, consumer complaints remain low, and officials have stated that price fluctuations during normal business operations do not constitute price gouging without a declared state of emergency. U.S. inventories of distillate fuels, including heating oil, have seen a significant decline.
