Comparing gas and oil prices before winter
Updated On: Nov 07 2013 10:10:43 AM CST
If you're still waiting to crank up the heat in your home, there's good news if you use oil: prices are going down.
And there's good news if you use gas. Its cost remains well below the cost of oil.
It's November and a lot of people are filling up the oil tanks.
"Naturally as the price of fuel comes down, it's better for us as a company, because it's better for my customers," said Tony Malandra, president of Yeager's Fuel, Inc.
The price for crude oil has been going down for months now according to Tony Malandra, president of Yeager's Fuel in Allentown.
Experts say concerns over a global slowdown are driving the price of oil lower.
Currently the average price of home heating oil is $3.81 per gallon, 19 cents lower than this time last year according to the U.S. Energy Information Administration.
The national average price for natural gas in 2013 has been higher than 2012, but locally UGI projects the price of gas this winter will be comparable to last winter’s prices.
"There are a couple of reasons why gas trended up a little bit earlier this year," said Joseph Swope, communications manager for UGI Utiliies, Inc. "There was a late winter which drained the gas storage and drove prices up for a little while."
But Swope says prices have moderated since then. And thanks largely to the hydraulic fracturing revolution, the cost of natural gas is dramatically lower than it was five years ago.
Swope says UGI's proximity to the Marcellus Shale formations in Pennsylvania means UGI has access to gas at lower prices than the national average.
"The price of fuel, and the price of the two energies it's kind of cyclical," added Malandra. "If heating oil is so high and natural gas is so low, sooner or later they have to balance out."
"The price of fuel will change," said Malandra. "I don't know what it's going to change to, but that's a guarantee the price of fuel will change and hopefully it will drop."
So whether you heat with oil or gas, there’s reason to be thankful about prices this winter.
Copyright 2013 WFMZ. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Driver killed when car hits tree on Route 10 in Berks
5-alarm fire at motel in Muhlenberg; wind hampering efforts
Man killed when hit by minivan near airport
Man killed, woman seriously injured in motorcycle crash
Reading police officer charged in theft of money evidence
Police seek to interview man in investigation of woman's death
Life Lessons: 8 foods to buy now
MH370 search: Officials not 'excited' over new object
Drug cartel actions in Mexico force local grocers to increase lime prices
More tests needed on body of woman found in rural Berks