EIA Releases Short Term Energy Outlook

EIA released its winter heating forecast today.  EIA is projecting a 13% increase in the cost of home heating for those using natural gas, 9% for propane and 2% for electricity.  For those using heating oil, EIA is projecting a 2% decline.  (See EIA Short-Term Energy and Winter Fuels Outlook slideshow).  This is of considerable concern in light of a potential 5 to 8% sequester cut.  EIA generally releases a more detailed report as well showing detailed prices by region.  That would suggest that the average cost of home heating could exceed $1000 this coming winter heating season.  It truly a double whammy of a reduction in purchasing along with potential cut in the appropriation.