Why you can expect cheap energy prices this winter
Gas and heating oil will be lower in coming months, energy analyst Stephen Schork says
Americans can expect lower fuel and electric bills this winter, according to one energy expert.
Stephen Schork of The Schork Group said consumers won’t be paying much more than $2 per gallon for gasoline in the coming months.
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“We [now] manufacture winter-grade gasoline,” Schork said on FOX Business' “Varney and Co.” “This is much cheaper for the refiner to manufacture and hence the cost is lower and the cost to the consumer will be lower.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| OIL | NO DATA AVAILABLE | - | - | - |
| USO | UNITED STATES OIL FUND - USD ACC | 69.75 | -1.54 | -2.16% |
Brent crude and the U.S. oil pricing benchmark, West Texas Intermediate, increased around 27% in November, the biggest monthly gains since March after COVID-19 vaccine developments raised the outlook for an economic recovery that could boost fuel demand, Reuters reported.
“Crude oil prices are the biggest driver to gasoline prices,” Schork told host Stuart Varney. “While we have had a nice rally up in crude oil, there is a limit to how high we can go. And we are now in the winter.”
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Schork said heating costs for Americans this winter will be low as well. In the Northeast, prices will be “very comfortable,” he said.
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“This is because your heating oil distributor had all summer to lock in prices with crude oil in that $20, $30, $40 range, as opposed to last summer when they were locking in for last winter when crude oil prices were above $50 a barrel,” Schork explained.
He went on to say that in the South, Midwest and West, where natural gas and propane are mainly used, “will also benefit.”
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“This is regulated prices, but your businesses that do trade in the day-ahead market are looking at very cheap energy costs through the rest of this winter and into next summer,” he said.
FOX Business’ Talia Kaplan contributed to this article.