Energy prices in the United States have soared, putting upward pressure on winter heating and gasoline prices. November typically marks the start of the heating season in much of Europe, which is about to enter its third severe winter since the Russia-Ukraine conflict.
European energy experts predict that Europe may face even more severe natural gas supply shortages and rising energy prices this winter. Europe's natural gas is highly dependent on the international energy market, and Europe will likely have to pay higher prices to maintain its liquefied natural gas (LNG) supply. Furthermore, rising electricity prices will significantly impact the continent's power supply chain.
Winter Heating Costs Rise
Currently, more than half of all households in the United States use natural gas for heating. Authorities estimate that the average heating bill for these households this winter will reach $746, a 30% increase compared to last year. The Midwest will be particularly affected, with heating costs projected to increase by 49%. For those who rely on natural gas, this will be the most expensive winter since 2009.
◆ Natural Gas as the Primary Fuel
Natural gas is the dominant heating energy source in the United States, used by more than half of all households. This winter, natural gas costs have risen by 30%, making it the most expensive winter since 2009.
Other Energy Price Trends
◆ Electricity and Fuel Oil Prices
Electricity also accounts for a significant portion of US heating energy, serving approximately 41% of households, but its price increase was relatively modest, at only 6%. Fuel oil prices also saw a 43% increase.
◆ Liquid Gas Prices See Largest Increase
However, the largest price increase occurred for liquid gas, used by approximately 5% of households. For these households, the steepest price increases are causing the most significant increase in heating costs.
Impact of Climate Change and Demand
◆ Weather Forecast and Cost Impact
Meteorologists predict that this winter may be colder than last year. If actual temperatures fall below forecast, heating cost increases could exceed projections, placing a greater burden on more households.
◆ Gasoline Price Rise
This week, US gasoline prices soared, reaching an average of $3.27 per gallon, a seven-year high, leaving many Americans gasping for air at the pump. This increase is primarily attributed to the sharp rise in crude oil prices. Citigroup predicts that Brent crude oil prices will rise to $85 per barrel in the fourth quarter, and warns that crude oil prices may hit the $90 mark in the near future.