Why is the cost of home heating oil so high?
There are a number of factors contributing to the high cost of heating oil this season. Some of these factors include: the growing global demand for oil; the capacity for global crude production which barely exceeds demand; tight refining capacities in the U.S.; and the temporary interruption of U.S. refineries caused by hurricanes Katrina and Rita. The impact of the hurricanes compounds a longer-term global trend of an increased demand for oil. When the demand for oil nearly matches the production rate, oil prices increase. These price consequences are not unique to New Hampshire, but are felt worldwide.
