Are heating oil prices set to rise?
Last month’s heatwave was hugely welcomed by most, giving it a new record for the hottest June on record! So, it might come as a surprise that today’s blog is about heating oil. I mean, what better time than in the midst of summer when we’re all reaching for the factor 50 to think about heating oil, right?
No, the sun hasn’t gone to our head, there’s a reason for our slight moment of madness.
During the summer months, heating oil is probably the last thing on your mind. But we suggest you give it some thought for one simple and important reason; buying it ahead of winter can save you money.
Heating oil is a considerable expense for all off-grid UK households, so it pays to make sure you’re getting the cheapest domestic oil prices you can.
What affects heating oil prices?
The cost of heating oil varies depending on a number of factors, mainly the price of crude oil, which is in turn affected by a number of other complex interactions, including:
- Refining costs
- Exchange rates
- Conflict in oil producing countries
- Increase in demand
Demand & seasonality – it’s getting hot in here
Irrespective of the above, the price of heating oil tends to match foreseeable and seasonal trends. When the outside temperatures are soaring, heating oil is usually at its cheapest. That’s because domestic heating oil is a seasonal product, so right now, demand is particularly low.
As with most commodity-based products, when demand decreases so does the price – and when demand increases, prices again follow in its footsteps.
But before we know it, things will soon change, and we’ll be rooting in the cupboard for our woolly jumpers.
Buying your heating oil during the summer means you can get prepared and take advantage of lower prices when they arise. It’s useful to regularly check your tank levels so you’re not caught off-guard!
Politics – a slippery slope
Although the weather has an impact on your home heating oil cost, it’s not 100% guaranteed to bring lower prices as oil is determined by various global political and economic influences.
With OPEC’s decision to cut oil production, there could be a rise in oil prices on the cards due to artificially-increased demand. Prices have not yet been affected, but who knows what the future holds.
In addition, now is the perfect time to top up your tank if you’re concerned about the looming period of uncertainty on oil prices that surrounds Brexit negatively impacting prices.
Here at Speedy Fuels, we provide heating oil (also known as kero, kerosene, burning oil and 28 second heating oil) at competitive prices to domestic customers across the UK, whatever the time of year.
For a quick and easy quote, give us a call on 0845 877 8036 and one of our heating oil specialists will be able to help.