If you use heating oil to heat your home, you know that the prices of heating oil are changing constantly. You can pay a certain amount during one heating season and that cost can change significantly the next year. Like many homeowners, you may not know why this happens and you are always looking for the best fuel oil prices near me. The answer to the fluctuating fuel prices question isn’t a simple one. There are plenty of factors that affect the cost. In this article, you will learn about the factors that can make the cost of your heating oil change year after year.
The Price Of Crude Oil
According to data from the US Energy Information Administration (EIA), the main reason why the cost of oil fluctuates is due to the fluctuating price of crude oil. The price per gallon of oil accounted for 55 percent of the cost of oil during the winter of 2006/2007 through the winter of 2016/2017. It is these changes that will affect the cost of your heating oil. When the cost of crude oil is higher, you will pay more during that heating season. When the price drops, you can expect to pay less. There are a few things that will cause the price of crude oil to fluctuate, such as the supply from the Organization of Petroleum Exporting Countries (OPEC) and their output. The demand from the major industrial companies as well as current political events can also cause the price to change.
If the weather is extremely cold, it can cause the price of heating oil to rise. For example, the winter of 2013/2014 was one of the coldest winters in history, therefore, the price of heating oil went up by 7 cents per gallon. Severe weather, such as hurricanes and tropical storms can also result in higher prices for heating oil. If one of these storms were to make landfall, the temperature usually drops. This would increase the demand for heating oil, causing the prices to rise.
During severe weather, the heating oil suppliers can have trouble getting it to their customers. Severe weather can also result in suppliers running out of oil. Due to the supply and demand during poor weather conditions, the market prices are driven up. According to the EIA, heating oil suppliers in cold climates, such as the Northeast US, often buy their oil from the Gulf Coast or from Europe if there is a shortage of heating oil. Due to the logistical challenges, it is more expensive when the oil is bought from these sources.
When oil refineries react to regulatory changes, it can cause the price of heating oil to increase or decrease. This can also occur when stringent safety requirements are introduced. If an oil refinery expects the demand for oil to decrease, the price could increase. This is because the refineries would need to scale down their production. If something like this were to happen during the warm months, oil prices would drop due to the refinery’s large inventory.
The price of fuel oil typically fluctuates based on the neighborhood or region. For example, if you like in an area where there are many suppliers, you would end up paying less for your heating oil than people who live in an area where there are just a few suppliers. If you live near a fuel supply area or staging area, you can also expect to pay less. The pricing factors tend to make the residential heating oil prices to fluctuate all over the country.
Alternative Heating Options
Alternative heating options, their cost, and their availability can cause heating oil costs to fluctuate. This could include electricity, natural gas, kerosene, geothermal heat pumps, and fireplaces. These alternative heating sources have their limitations depending on affordability, safety, and efficiency.
Heating Oil Prices Easton PA
There are a few factors that cause the price of home heating oil prices today to fluctuate. These include
- pricing factors
- alternative heating options
- regulatory changes
- crude oil prices
To find the best price of fuel oil today, you can contact R.F. Ohl. We offer the most affordable prices in all of Northeastern PA. Our cost effective heating oil prices along with our high quality fuel delivery services, make us a trusted name in the industry. Our deliveries are fast, friendly, and reliable. Be sure to call us today to schedule an appointment.
We service Bath PA 18014, Bethlehem PA 18015, Durham PA 18039, Easton PA 18040, Hellertown PA 18055, Kintnersville PA 18930, Martins Creek PA 18063, Nazareth PA 18064, Riegelsville PA 18077, Springtown PA 18081, Stockertown PA 18083, and Tatamy PA 18085. We also service all of Carbon County, Monroe County, Lehigh County, Northampton County, and Schuylkill County.