Connecticut families lack funds to heat their homes this winter

Tori Richards

December 27, 06:37 PM December 27, 06:39 PM

Connecticut families may have to choose between heating their homes and buying food this winter as newly-allocated government subsidies are expected to fall short of massive energy increases.

Low and middle-income families are eligible to receive up to $2,320 in state and government funds, $340 less than the top level received by residents two years ago, the CTMirror is reporting. The money comes from a mixture of unspent pandemic relief, the federal Low Income Home Energy Assistance Program, and state funds.

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A special session of the General Assembly was called last month in which an extra $430 was allocated for each needy family.

Connecticut Senate Minority Leader Kevin Kelly (R-Stratford) blamed Washington for not providing more than $114 million in funding, leaving Connecticut in the lurch.

“The work is far from done,” Kelly said. “The latest dribble of funding from Washington still leaves Connecticut facing a significant reduction in home heating assistance compared to last year. At a time when more families are in need and home heating oil prices are skyrocketing, we must do more to provide relief, not less.”

Heating oil prices in the state are averaging about $4.34 per gallon, which is 37% higher than one year ago and 85% more than December 2020.

Many families have already used their energy benefits and are now wondering how they will cope with more looming months of cold weather.

“If all of these dollars have been spent and people are facing crisis, [lawmakers] need to be ready to act,” said Nora Duncan, executive director of the Connecticut AARP.

Republicans are urging Democrat majority leaders to dip into a projected budget surplus of $2.8 billion to make sure every home is heated during the winter months.

Russian oil exports cratered by more than half since G-7 price cap began

Breanne Deppisch

December 20, 11:13 AM December 20, 11:13 AM

Russia’s oil shipments cratered by more than half in the first full week after the G-7 oil price cap took effect, an alarming decline that could risk global supply shortages.

In the first seven days after the G-7 price cap took effect on Dec. 5, alongside a European Union sanctions package banning Russian crude, Russia's oil shipments plunged by 1.86 million barrels per day (bpd) to 1.6 million bpd — a decline of roughly 54%, according to data from Bloomberg.

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Four-week averages also plummeted by 266,000 bpd, a new low for the year.

The U.S. and other G-7 countries meant for the oil price cap to deprive Russia of revenue for its war in Ukraine but without leading it to take supply off the global market. Under the policy, buyers who purchased Russian supplies under the capped price still have access to insurance and other shipping services that otherwise would be prohibited.

The drop in Russian shipments was due in part to maintenance at a key Russian port of Primorsk that has since been completed. But traders have also faced practical limitations when dealing with the cap, including in moving crude from the Black Sea to the Mediterranean. Longer shipping distances to China and India have also driven up freight costs.

The volume of Russian crude on tankers headed for China, India, and Turkey, Russia’s three main buyers, as well as quantities on ships without a destination, also fell. According to commodity analytics firm Kpler, 50% of Russian volumes were shipped to India and 30% to China.

The decline in Russian oil exports is expected to persist through April of next year, according to Kpler analyst Victoria Grabenwoger.

The firm forecasts that trading will continue at suppressed levels, despite growing demand from India and China, as well as the emergence of new buyers, including Indonesia, Sri Lanka, Brazil, and Pakistan.

US diesel inventories get encouraging Thanksgiving sign with small gains

Breanne Deppisch

November 25, 05:14 PM November 25, 05:14 PM

U.S. inventories of diesel fuel and home heating oil saw small gains this week, an early but encouraging sign at the start of the winter heating season—and with stocks depleted to their lowest level in decades.

Distillate fuel inventories increased in the United States by more than three million barrels in the six weeks between Oct. 7 and Nov. 18, according to data from the Energy Information Administration.

The gains, caused primarily by easing global demand and extraordinarily high prices, are small yet significant for this time of year—when inventories normally begin to fall amid heightened demand for home heating oil, especially in the Northeast.

The last time the U.S. saw its distillate stocks rise during the same period was 14 years ago, in 2008, according to government data.

News of the slight increase comes as the U.S. has struggled to respond to a diesel supply crisis due primarily to a sharp imbalance between refining capacity and demand, including from the U.S. and China, the world’s top two diesel refiners, each producing at less capacity than they were compared to pre-pandemic levels.

The U.S. ban on Russian oil imports also affected the industry. Prior to the war in Ukraine, the U.S. was importing roughly 700,000 barrels of petroleum from Russia each day—most of which were shipped directly as refined petroleum products.

The supply crisis sent U.S. distillate stocks plunging to their lowest level since 1951. Prices for diesel fuel have climbed 43% higher over the last 12 months, compared to just 15% for gasoline.

Analysts have warned that diesel costs are expected to average around $6 per gallon this winter—though they could climb higher if the weather gets colder.

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The small uptick in distillate inventories is due primarily to a slight slowdown of U.S. distillate exports, as well as a small rise in domestic production and a reduction in global demand.

In the four-week period ending Nov. 18, U.S. producers sent an average of 4.03 million barrels per day to the domestic market.

But the more encouraging news was due to lower exports: U.S. distillate exports slowed by 0.4 million barrels per day (bpd) since Oct. 7, government data shows.

This could be encouraging news if the trend continue, but analysts say it’s unlikely that distillate inventories will return to normal levels until summer at the earliest.

According to the EIA, residents who rely on home heating oil will spend an average of $2,354 to heat their homes this winter— a 27% increase from the previous winter and the highest price point in more than 25 years.

Biden's drilling and coal comments expose Democratic rift days before election

Haisten Willis

November 08, 03:00 AM November 08, 03:00 AM

President Joe Biden exposed a rift within the Democratic Party just two days before an election with his off-the-cuff pledge to approve "no more drilling. "

At the end of a rally with embattled Gov. Kathy Hochul (D-NY), Biden made apparently spontaneous comments to a heckler and opened up another midterm headache for his party.

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"No more drilling,” he said, waving his hand with a back-and-forth motion. “There is no more drilling. I haven’t formed any new drilling.”

The remarks come on the heels of a spat Biden started with Sen. Joe Manchin (D-WV) by saying he's going to shut down coal plants across the country and appear to directly contradict comments the president made just days before.

At an election rally in New Mexico on Thursday, Biden bragged that his administration hadn't slowed down any oil leases in the state and said energy companies "should be drilling more than they're doing now. If they were drilling more, we'd have more relief at the pump."

Some Republicans pointed to Biden's New York comments as confirming a hidden truth — that Democrats want gas prices to go up in order to force a transition to green energy.

"Biden just admitted his anti-American oil & gas agenda,” Rep. Steve Scalise (R-LA) tweeted. “Not even his allies in the media & the phony fact-checkers will be able to cover for him on this now. It came straight out of his mouth.”

House Oversight Republicans released a report detailing "Democrats' war on American energy" the following morning.

But the conflict within his own party may prove more problematic for the president. Manchin released a scathing statement after Biden pledged to shutter coal plants, which are a major economic driver in West Virginia.

"President Biden’s comments are not only outrageous and divorced from reality, they ignore the severe economic pain the American people are feeling because of rising energy costs," Manchin said. "Comments like these are the reason the American people are losing trust in President Biden and instead believes he does not understand the need to have an all-in energy policy that would keep our nation totally energy independent and secure."

Across the border in energy-rich Pennsylvania, both anti-coal and anti-oil comments could be problematic in the crucial Senate race between Republican Mehmet Oz and Democrat John Fetterman, who has been vague at times about his own support for fracking.

Biden's latest remarks promising to end new oil drilling could add to the midterm headaches, as gas prices have risen sharply during his time in office, and some blame his anti-oil policies for contributing to the surge. The average price of a gallon of gas was $2.31 when Biden took office. It peaked above $5 per gallon this summer and sits at $3.80 now, according to AAA.

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Detractors have blamed the president for helping drive up the price, and in turn he has tapped the Strategic Petroleum Reserve and taken other measures to make gas cheaper. Biden met with Saudi Crown Prince Mohammed bin Salman over the summer, which generated its own round of controversy, and the kingdom announced later it was cutting production.

Samuel Abrams, a senior fellow at the American Enterprise Institute, said Biden may be saved by the fact that the remarks came so close to the end of the midterm elections, with millions of early ballots already cast, and during a relatively low-profile Sunday night appearance. Still, it is indicative of a major intraparty spat.

"Democrats are not aligned on this issue at all, that's been a big problem for the party for years now," said Abrams, a professor at Sarah Lawrence College, where the rally took place. "In Biden's case, it could be a sign of his age, perhaps not even remembering the contractions. ... This would not be the first time the White House has tried to walk back his comments."

White House press secretary Karine Jean-Pierre responded to a question from the Washington Examiner during Monday's press briefing by repeating previous statements about approved drilling permits that remain untapped by the industry.

The dispute may prove to be more symbolic than real, argues Cato Institute senior fellow Peter Van Doren, due to nuances about onshore vs. offshore drilling and the fact that drilling on private land is now more important than that done on public land.

But the issue remains politically volatile, especially so long as elevated gas prices remain top of mind for voters.

A Trafalgar Group poll found that 54.4% of voters say rising gas prices will make them more likely to choose Republican candidates in the 2022 midterm elections, including 55.5% of independents. Another poll, from the New York Times, found that voters who were focused on the economy and inflation favored Republicans over Democrats 64% to 30%.

Oil prices climb on news that China could ease COVID-19 restrictions

Breanne Deppisch

October 20, 02:39 PM October 20, 02:39 PM

Oil prices rose by more than $1 on Thursday following reports that China is weighing easing its COVID-19 restrictions for visitors, signaling a likely spike in demand from the world’s largest oil importer.

Futures for international benchmark Brent crude increased by 1.4% early Thursday afternoon, climbing as high as $93.71 per barrel.

Meanwhile, futures for the U.S.-based West Texas Intermediate climbed by $1.76, reaching $87.31 per barrel.

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Bloomberg reported Thursday that China is weighing easing its mandatory 10-day quarantine period for inbound visitors down to just seven days, including two days at a hotel and five days at home.

An economic rebound in China would almost certainly increase global oil demand, and therefore, prices — squeezing an already-tight global market even further after OPEC+ agreed to slash oil production by 2 million barrels per day.

These developments also appeared to cancel out any drop in prices following President Joe Biden’s announcement Wednesday that his administration would sell off the remaining 15 million barrels of oil from the Strategic Petroleum Reserve in December.

The sales are part of the 180-million-barrel release he ordered in March and come as Biden and Democrats in Congress seek to lower gas prices ahead of the midterm elections.

But the SPR drawdowns will also leave the reserve below 400 million barrels, its lowest amount since 1985.

Another looming factor threatening the global oil supply will come in December, when both a G-7 Russian oil price cap and a European Union embargo on imports of Russian seaborne crude are slated to take effect.

If Russia retaliates by cutting production, markets could be squeezed further — a problem that Biden cannot fix by SPR drawdowns.

How Russia will react will be a major determining factor, Lutz Kilian, a senior economic policy adviser at the Federal Reserve Bank of Dallas, said in an interview.

“There’s just not enough oil in the SPR to deal with a really big oil supply disruption,” he said.

Oil and fuel rig count up 54% considering the fact that previous 12 months

Breanne Deppisch

July 25, 07:00 AM July 25, 07:00 AM

The amount of lively oil and pure gasoline drilling rigs in the United States rose by two this week and 267, or 54%, in the previous 12 months, an boost that will come even as oil need — and, by extension, fuel rates — has abated a little given that final thirty day period.

The numbers carry the present-day U.S. rig rely up to 758, in accordance to the new info, printed by Baker Hughes on Friday.

The selection of fuel drilling rigs climbed by two, to 155, whilst the amount of rigs focusing on crude oil remained unchanged at 599. Four rigs have been categorised as “miscellaneous.”

The most current rig depend increases occur as President Joe Biden has been pressured to reverse system partly on his marketing campaign trail pledge to crack down on fossil fuels. In recent months, Biden has urged oil and fuel providers to ramp up domestic manufacturing, trying to get to combat soaring charges for customers and a spike in demand from customers amid Russia’s war in Ukraine. Oil and gas production have generally amplified less than Biden, even with his campaign agenda, as the marketplace has recovered from the pandemic.

The administration has also signed off on greater LNG export volumes for numerous existing and pending export terminals and promised to assistance the Europeans purchase more gasoline amid fears of an abrupt cutoff in Russian provides.

Continue to, some marketplace officers have accused the administration of not likely considerably enough to overcome the large charges, noting that power costs accounted for almost 50 % of the 9.1% rise in buyer fees in June, in accordance to a the latest report from the Bureau of Labor Figures.

Many others have mentioned there is no promise these lessen selling prices are below to stay. “While the price tag of oil has declined on easing global need, it would not take much to lead to a reversal and mail those people rates again up and inflation higher with it,” main RSM economist Joe Brusuelas instructed the Washington Examiner in a modern job interview.

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Gasoline desire has also decreased in the latest weeks. In accordance to information from the U.S. Energy Info Administration, U.S. fuel need stood at 8.52 million barrels for each working day past 7 days — a slight uptick from the past week's range of 8.06 million bpd but however far beneath the 9.3 million bpd recorded a person year before.

Overall domestic gasoline stocks also improved by 3.5 million bbl to 228.4 million bbl, a signal that U.S. desire has abated marginally even as gasoline inventories rebound.

Retail gasoline prices stood at a nationwide common of $4.41 per gallon on Friday, in accordance to AAA, dropping 16 cents from final 7 days and 54 cents in comparison to the exact stage final month.

Oil drops down below $100 for to start with time in months as recession fears improve

Breanne Deppisch

July 05, 12:04 PM July 05, 12:04 PM

Oil price ranges tumbled under $100 a barrel on Tuesday for the initially time because May, falling more than 8% amid source fears and growing fears of a world economic downturn.

Futures for the United States-based West Texas Intermediate fell Tuesday by 8%, or $8.67, trading below $100 at $99.76 for each barrel for the initially time considering the fact that May well 11.

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Meanwhile, futures for worldwide benchmark Brent crude fell by $7.70 to $104.76 per barrel.

Analysts at Citigroup reported Tuesday that oil prices could tumble to $65 for each barrel by the finish of this 12 months and to $45 by the stop of 2023 if the worldwide overall economy tumbles into a recession.

“In a recession scenario with growing unemployment, residence and company bankruptcies, commodities would chase a falling price tag curve as costs deflate and margins convert unfavorable to generate provide curtailments,” Citigroup analysts claimed in a note to customers.

"Currently, our US economists do not assume the US to dip into a recession, but are also skeptical about the Fed's capacity to engineer a modest slowdown, as the historical encounter has been of tough alternatively than smooth landings," they wrote.

Permian Basin to hit file-large output in July: EIA

Breanne Deppisch

June 13, 07:44 PM June 13, 07:44 PM

Oil output from the Permian Basin is slated to rise to a document-breaking high of 5.316 million barrels for each working day in July, according to a new report from the U.S. Strength Information Administration — an maximize that will come even as superior inflation and a absence of refining ability threaten to preserve prices mainly unchanged.

According to the EIA’s Drilling Productiveness Report, oil output in the Permian Basin, the prolific shale basin that stretches throughout Texas and New Mexico, is anticipated to enhance by 84,000 barrels for each day.

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Whole output from main U.S. shale oil basins, in the meantime, is anticipated to increase to 8.901 million barrels for each working day, the highest position due to the fact March 2020, for each the EIA.

In the meantime, the range of drilled but incomplete, or DUC, wells, is at its most affordable level because 2013, the EIA said. The range of accessible DUCs has fallen for 23 consecutive months, Reuters reported.

The report-significant Permian output stages occur right after a monthslong push from the Biden administration to boost drilling and domestic generation, portion of an exertion to lower report-large fuel expenditures amid Russia’s war in Ukraine, which has touched off demand and a world wide scramble for electrical power materials.

Regardless of the greater-than-predicted EIA forecast, analysts say the effects of the new crude source is predicted to be minimal. For people to see a reduce in price ranges, a lot more drilling have to come about — and producers can not count on current DUCs to steer clear of the price tag of paying for more wells.

To that close, productivity in the Permian Basin has declined each individual thirty day period since December 2020, according to the EIA report. And production there is forecast to tumble even even further upcoming thirty day period, down to 1,116 barrels per day, the cheapest point given that August 2020.