In the United States alone it is believed that a lot of fuel will be used this winter compared to the last. The reasoning behind it was unknown until thorough research was conducted. It looks like this winter is going to be a lot more interesting.
The differences in the usage are of course varied, not all of the fuels will have a similar type of increase in usage. For example, the average increase for natural gas expenditures will most likely increase by 5%. Home heating oil is looking to be used quite excessively this year and is forecast to increase no less than 20%. Electricity is not facing too much difference, but considering the amount used, a 3% increase is still quite a lot.
All of these increases will most likely affect crude oil price as well. Most of this news is directly correlated with oil prices actually. All of these increases in usage is going to require a lot more oil than the US was expecting. Prices are already starting to change.
The EIA is expecting massive increases in oil prices. The fact that the US is going to be needing a lot more oil this year for the winter, has already become known to all of the manufacturers. They have definitely not shied away from increasing the prices quite a lot and the EIA had to run around collecting data and helping with predictions.
Let's look at the numbers and predictions. Brent crude oil price was pretty consistent in September, averaging $79 per barrel, but still managed to get a $6 increase within just 1 month from August. The 2019 predictions have already been made by the EIA, thinking that the price of Brent crude oil will fall to a consistent $75 in 2019. Businesses like Acumen Algo have been already announcing that similar predictions have already been included to its oil trading robot software.
All of this, of course, affects West Texas Intermediate (WTI) as well. The crude oil prices for WTI averaged $6 less than Brent crude oil in 2018 and according to the EIA, the same story will be repeated in 2019. The futures and contracts values for January 2019 ended a few weeks ago on October 4, 2018. All of the information gathered from them suggest that there will most likely be a price range between $60 and $93 per barrel. These WTI prices may not encourage some of the investors to make changes in their portfolios, but the predictions have been announced with a 95% confidence level.