Analysts expect higher electricity bills this winter. Why over here

  • We’ve enjoyed low gasoline and oil prices lately, but that may not last long.
  • Energy prices could rise this winter, making heating your home or filling your car more expensive.
  • Among other things, the cost of energy will depend on how things shape up with Europe’s energy crisis.

One of the few things to cheer for in Tuesday’s consumer inflation report was a drop in gasoline and oil prices, but it’s too early to claim victory just yet.

Many, including Treasury Secretary Janet Yellen, warn of potential price spikes that could send shudders through Americans this winter as they watch their heating bills or pump gasoline.

Yellen said in an interview with CNN on Sunday, “This winter, the EU will stop buying Russian oil for the most part and, in addition, they will ban the provision of services that help Russia send oil by tanker.” enables.” “It is possible that oil prices may rise.”

But there are other factors that can make this winter more expensive. President Joe Biden’s one million barrels per day oil release from the country’s emergency stockpile is set to expire in October, Europe’s energy crisis is expected to hit hardest during the cold months, and the biggest oil-producing countries could cut production. , other analysts noted.

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Which fuel will cost more?

Analysts say there is room for an increase in both oil and natural gas prices, which consumers will feel at the pump and at home.

Oil is about half the price of a gallon of gasoline, while diesel fuel for vehicles such as heating oil for trucks and homes is distilled from oil. Most of the US residential and commercial oil consumption occurs in the New England and mid-Atlantic regions.

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