Oil prices at an 11-year low
In recent weeks motorists have welcomed the move by major supermarkets to drop their petrol and diesel prices to under £1 per litre. Yesterday it was reported on the BBC news website that crude oil has fallen to an 11 year low. There are a number of factors that influence the price of oil, but historically it has been one of the below:
Factors such as severe weather, including natural disasters can be a big factor that affects supply and demand for oil. Local weather conditions such as the heavy snow in the winter of 2010/11 can have massive implications on the price due to the surge in demand, localised weather like this can also cause delays in deliveries.
The global oil price has risen considerably when there has been civil unrest in oil producing countries. We have witnessed this in recent years when conflicts started in Libya, Iraq and Iran. When concerns over supply arise, prices increase and then typically decrease when the situations are resolved.
The current decrease in the oil price comes as demand globally has decreased significantly as fracking has taken off in some countries such as the US, leading to them become more self-sufficient. OPEC (The Organization of the Petroleum Exporting Countries) a group of the largest oil producing nations- has refused to cut oil production leading to a surplus of crude oil in the global market which is great news for end users who use heating oil for home energy and for motorists as this has resulted in prices coming down.
The time of year
In general, during the winter months when demand for Heating Oil is typically it highest, the price of oil increases. This isn’t always the case though; in July 2015 the cost of heating oil was more than 5p per litre more than November later that year. This is a complete reverse of what usually happens, when the price of heating oil is typically lower in the summer months when demand is low and increases as the colder weather arrives in the winter.
Ordering more Heating Oil typically lowers the price per litre. Ordering 500 litres at a time puts the cost up for you and for us. This is because the more we deliver per customer, the better it is economically for our vehicles, so we can pass the saving on to you.
You can rest assured that any savings that Rix receives means lower prices for you.
To take advantage of these low prices, simply follow this link for a free instant quote.