Residential heating oil prices fell slightly during the report week falling 0.023 to $3.938 per gallon -- remaining 0.115 above the same time last year. Wholesale heating oil prices increased 0.048 to $3.108 per gallon -- 0.229 above year-ago prices.
The average residential propane price shed 0.009 -- a slim decline over the previous week to end at $2.401 per gallon -- 0.454 lower than the same time last year. Wholesale propane prices also decreased but only by 0.001 to $0.833 per gallon -- 0.498 less than year-ago pricing.
Winter weather has finally made its way into the Midwest dumping snow over some of the most arid portions of the Midwest.
The fresh blanket of snow should stick and that suggests colder temperatures in the short-term. This will pressure distillate and propane stocks and may place upward pressure on the price of home heat all around as more Midwesterners crank up the thermostat. While propane stocks are above five-year averages, lagging distillate inventories will have the most dramatic increases appearing in heating oil. While increased demand for propane may also increase prices here, any upticks will have much better support on strong supply and should be affected less by increased demand.