Heating Oil prices update
So far in 2014 heating oil prices have remained relatively low and at times prices have been at their lowest point in the last 12-18 months.
There are a number of factors influencing heating oil prices. These factors will impact oil prices at international, national and regional levels and will all influence the price that you pay to heat your home.
The winter of 2013 and 2014 has been extremely mild which has played a big part in the low heating oil prices we have seen over the last few months. A cold winter can play a huge role in driving heating oil prices up as demand soars.
Other factors that can influence these changes are global events such as war, natural disasters and fuel strikes at refineries. For example due to the recent unrest in Ukraine Oil prices rose to a five-week high as tension escalated between Ukraine and Russia, the world’s biggest energy exporter. A halt of Russian crude and natural gas supplies through Ukraine “could be hugely impactful,”said analysts . Any sanctions on Russia’s energy industry would cause prices to “spike much higher,” he said in a report earlier this week.
If you look at the graph below, you can see key events that happened around the world and the effect they had on crude oil prices over the last 5 years.
So what can you do to help minimise the effect of these external factors effecting how much you pay for your heating oil?
At Rix we recommend you plan your heating oil deliveries in advance. Ordering at quieter times of the year can help influence the porice you pay, for example, during the summer months, heating oil demand is usually at its lowest and therefore there is a surplus of supply, which in turn will lead to lower prices. However with a lack of planning, you may find yourself having to order as a cold weather spell moves in, such as snow. In this instance customers generally panic buy which leads to a strain on the supply chain, which can significantly increase the price of heating oil.
The size of your heating oil order also influences the price you may pay. If a distributor is able to deliver a larger volume to your tank, typically the cost of delivery will be less. Therefore the customer will benefit from a lower cost per litre.
Remember, Heating Oil prices change on a daily basis as it is a commodity product. You can check heating oil prices with distributors either by calling them or as in the case of Rix Petroleum, we offer a live online price which you can get for deliveries from 500 litre's or more. Simply click here and enter your details on the next page to get a live heating oil quote.