Phew, what a scorcher this summer is turning out to be! Highest temperatures since records began and all that jazz. So, what’s the subject of today’s blog … heating oil of course. What else do you want to read about in early August when the temperatures outside are soaring?
Okay, so bear with us, there is method in our madness. In midsummer, heating oil is likely to be the last thing on your mind but we think you ought to give it passing consideration for one simple reason … it could save you money!
The price of heating oil is subject to a great many influences, some of which are outside the hands of distribution companies like us.
It is affected by the price of crude oil, for a start, which is in turn affected by a whole host of other complex interactions such as supply, market sentiment and the behaviour of traders in response to those things.
These interactions dictate at what price we can buy product in and therefore what price we sell it on at. But if all that sounds like we’re simply blown about in some uncontrollable market-propelled global gale, then fear not. The price of heating still tends to correspond to predictable, seasonal trends.
Of course, the most influential of those trends is supply and demand. As with many commodity-based products, when demand drops off so does price. When demand increases, prices again follows. This means you can have a direct and significant influence over price you pay for heating oil, simply by deciding when you buy it.
In midsummer, when the sun is blazing down and everyone is reaching for the factor 50, heating oil is usually at its cheapest. That’s because as a seasonal product, demand right at the moment is super-low. But that will soon begin to change. As August progresses and September starts to loom, people begin to think about autumn and the colder months ahead. With every passing week thereafter, as we sneak towards winter, the price can increase.
And of course, another thing to consider is that the closer you get to peak buying times, the longer it takes to receive your heating oil, because everyone else wants theirs too!
So, in many ways, buying in the summer is the best time to fill up. It might be the last thing on your mind, but a few minutes’ consideration now could well see you save a few pounds in the long run!