Hot prices seen for a chilly winter

Industry groups warn consumers that heating costs will climb this season.

WASHINGTON (Dow Jones) – Three energy-industry groups issued a warning to U.S. consumers Thursday, saying they foresee higher fuel prices and home heating bills ahead this winter.

“We do anticipate higher prices again,” said Dave Parker, president of the American Gas Association.

…Additionally, owners of U.S. homes that use heating oil are taking their time filling up on supplies ahead of the winter — a trend that’s creating some supply concerns for the industry.

“We’ve been producing record amounts of distillate fuel but what we’ve seen in … New England, which is a primary consumer of heating oil, we’ve seen our inventories of primary storage shoot up to something like 50% above average,” said Felmy.

“Eventually, if you don’t fill up, we run out of storage room and that creates a supply backlog,” Felmy warned.

Dow Jones Newswires