Propane and heating oil hit record high average prices across the U.S. as cold snap takes toll

In Ohio, the average price for residential propane was $3.731 per gallon, up from $2.999 the previous week. For heating oil, the residential price rose from $3.675 per gallon to $3.853 per gallon.

“Demand for heating oil has outpaced supply during January’s cold snaps, resulting in a drawdown of stocks,” the agency said. “The EIA estimate for distillate consumption (a category which includes heating oil) for the United States has risen sharply over the past three weeks, averaging 4.0 million barrels per day for the three weeks ending January 24, an increase of 500,000 barrels per day from the three weeks ending January 3.”

It added that press reports indicate ome commercial, industrial, and electricity generating customers that typically burn natural gas are turning to oil because their natural gas suppliers have exercised their interruption rights in order to serve customers with firm contracts.

“Interruptible customers often use heating oil or residual fuel oil as a backup fuel for space heating. This fuel switching is creating incremental demand for heating oil,” the agency said.