Home heating oil futures curve remains in backwardation, indicating strong near-term demand relative to deferred months. Analysts attribute this to anticipated cold weather patterns and lean winter stockpiles. As of 2020, some 550,000 Connecticut homes relied on heating oil, according to the U.S. Energy Information Administration, versus 670,000 that use natural gas and the rest using wood, propane or electric furnaces. After two years of declines, Connecticut home heating oil customers are seeing higher prices as the calendar flips to October -- but nowhere near what they faced in the autumn of 2022 when heating oil was running $2 more a gallon on average. Regional heating oil delivery benchmarks in New England are strengthening, aligning with upward moves in home heating oil futures. This correlation reinforces the winter demand thesis among market strategists.
