Oil Price Increases in 2016 – 2017 Heating Season??
Pricing projections for the home heating oil industry are always a tricky proposition. There are many factors that come into play when looking at oil price increases. For example simple supply and demand and weather. This article will discuss what some of the industry experts are projecting.
During last year’s winter, consumers enjoyed a relatively low oil price point. Coupled with a mild winter many homeowners experienced lower than average heating expenses. According to the Farmer’s Almanac, this winter is going to be slightly warmer than normal. However, it will probably be colder than last year’s winter. It looks like we will have an above-average snowfall. The following is a direct quote from the Farmer’s Almanac:
Winter will be slightly warmer than normal, with near-normal precipitation and above-normal snowfall. The coldest periods will be in early to mid-January, from late January through early February, and in mid- to late February. The snowiest periods will be in mid-November, late January, and early to mid-February.
When we take a look at OPEC in the global oil markets, there is chatter that the price per barrel of oil could reach $60 by the end of 2016. Saudia Arabia’s energy minister was quoted to say, “it is not unthinkable that we could see $60 by year-end”
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Oil Price Increases To $60 Per Barrel?
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In an article from Bloomberg News titled “Saudi Minister Says Oil at $60 by Year-End Not ‘Unthinkable’“, it seems like the general sentiment of oil approaching $60/barrel is possible as evidenced in this excerpt:
Ministers from some of the largest oil-producing nations are gathering at the World Energy Congress in Turkey. With benchmark Brent crude trading below $52 a barrel – less than half its price in mid-2014 – oil-rich countries from Saudi Arabia to Russia have come under budgetary pressure, while major companies are set to cut investment for the third year.
Al-Falih’s oil price prediction was echoed by Bob Dudley, the CEO of BP, who told Bloomberg Television in Istanbul that a range of $55 to $60 a barrel was possible by year-end following the OPEC agreement.
Other industry experts are also predicting a jump in oil prices as we end 2016 and move into 2017. OilPrice.com is an industry leader in the oil and energy news. They published an article on August 2016 titled, “Merrill Lynch Expects A 46% Jump In Oil Prices By June 2017“. In this posting, the author is pointing out a reduction in oil supply. The following is a brief excerpt of his findings:
Oil production continues to fall as global oil & gas investment has been cut by nearly $300bn (41%) and rig counts have dropped by 37% since the 2014 peak. In contrast, low oil prices continue to drive healthy demand growth, putting the oil market on pace to see its biggest supply-demand deficit since 2011
Keep in mind that all of this news is based on predictions, forecasts, and personal opinions. Therefore, we are not specifically stating that oil prices will be higher as this winter progresses. However, it is probable that the price of oil will increase. As we always say, if we could accurately forecast the future we would all be millionaires!
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If you manage your own oil delivery and place oil orders online then, you can click the button below to place in oil order now. Lock-in today’s low pricing before crude oil prices increase.
R.F. Ohl Price Protection Plan
Are you uncertain about oil pricing throughout the winter season? If so, cap price with our Price Protection Plan. As an added bonus, we will give you a free tune-up of your oil heating system, a value of $229, when you choose our Price Cap Protection option.
The R.F. Ohl Price Protection Plan Includes:
- $125 “no run out” automatic delivery guarantee. If you run out of heating oil while on our price cap automatic delivery plan, we will credit your account $125.
- A live person answers the phone 24 hours a day.
- Priority service, if you need heating system service.
- The price you quoted over the phone is always the price when we deliver.
To enroll in the R.F. Ohl Price Cap Protection call (610) 377-1098.