The average wholesale heating oil price had dropped nearly 27 cents from last week to $1.71 per gallon on December 8, 2008 (see the table at the end of this report). The graph below shows the spread in Nebraska prices from month to month and from this year compared last year. This week's average price was 87 cents (or 34 percent) lower than the price at this time last year.
The four other states surveyed in the Midwest Region had lower prices ranging from $1.50 to $1.55 per gallon resulting in a regional average of $1.53. Normally, the other surveyed states have comparable prices to Nebraska, but North Dakota did not submit a report this week and Ohio submitted their first report this season. North Dakota's average has been running 60 to 90 cents higher than the regional average. This situation created a wide range in averages and boosted the regional average. States near in proximity to Nebraska, such as Missouri and Minnesota, had prices of $1.55 and $1.50, respectively. Each surveyed state's average price had fallen about 30 cents from last week.
For the week ending December 5, the Midwest distillate inventory level was on the bottom boundary of the normal range for this time of year at 2.7 million barrels.
Notes: The annual report for the 2007-2008 winter season is available. An archive houses annual reports from previous years.
The Oil Price Information Service collects wholesale heating oil prices each week for Nebraska and four (4) other states in the Midwest Region during the heating season (October to March). The Energy Information Administration, the independent statistical and analytical agency within the U.S. Department of Energy, uses the prices collected by the Oil Price Information Service to calculate a state average price, a regional average price, and a national average price which can be seen in the report Wholesale Heating Oil Prices by Region and State.
Prices are not collected during the off season (April through September).
For statistical purposes, the Energy Information Administration defines the Midwest region to include the states of Iowa, Illinois, Indiana, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, Oklahoma, South Dakota, Tennessee, and Wisconsin.