Heating oil prices predicted to rise

13 August 2008

Home heating oil prices have been predicted to rise this winter, despite expected falls in the cost of crude oil.

Last month a report by the US Energy Information Administration (EIA) suggested that the average price of a barrel will be $133 (£70) in 2009, CNN Money reports.

However, this estimate has now been revised to $124, as demand in the country has been dropping.

"Prospects of improved oil market fundamentals over the next 18 months point to an easing in the market balance and price weakness over the near term," the EIA report stated.

But this is to have little effect on home heating oil bills, as consumers are expected to pay 20 per cent more between October and March than in the corresponding period last year.

As costs have risen, police around the UK have reported increases in heating oil thefts, with one homeowner having 500 litres stolen in two separate raids in July.

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