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Since the invention of the oil burner in the 1920s, heating oil has been used to heat homes. It has remained a popular option for millions of Americans living in cold, snowy climates.
Heating oil, like gasoline, is a commodity with prices that fluctuate throughout the year based on supply and demand. Its demand skyrockets during the cold winter, causing heating oil prices to soar at the end of the year.
Every year, customers ask us, “Will heating oil prices fall this year?” This is an excellent question! If you use heating oil as your primary heating fuel, you understand how frustrating it can be to buy heating oil in the winter when the price rises. Did you know that buying fuel oil before winter begins can help you save money on your heating bill?
Factors Influencing Heating Oil Prices
If you’ve been buying heating oil for a long time, you may have noticed that the price per gallon varies from season to season and even within the same season. Why is this the case? Heating oil prices are determined by a variety of factors that are constantly changing.
1) Crude Oil Price
The price of crude oil accounts for up to two-thirds of the gasoline cost. Crude oil is traded on global markets and is subjected to various forces that cause its price to fluctuate.
2) Weather
Heating oil is affected by supply and demand. The prices of heating oil rise during the winter season when more oil is required to heat homes. Heating oil prices remain stable or fall during a relatively mild winter.
3) Competition
Roughly 90% of the heating oil is sold in the United States. The prices will be lower if you live in an area where many heating oil suppliers compete for business. Heating oil prices are affected by proximity to shipping ports.
Political ideologies can influence prices. Each of these factors varies yearly, making heating oil prices impossible to predict. One thing is certain: When you buy your home heating oil from one of the best heating oil service providers like Suffolk oil you will pay less.
Why Are The Prices Of Home Heating Oil So High?
Americans heat their homes with heating oil, but fluctuations in energy costs impact them. The cost of crude oil, from which home heating oil is refined, is subjected to various market forces, including
- Political factors like embargoes or tariffs
- Weather events that affect refinement
- Shipping delays
- Other supply chain issues
- Price and viability of alternatives
How Much Have The Prices Of Home Heating Oil Increased?
Since the winter of 2020-2021, home heating oil prices have increased even more. According to the Energy Information Administration, home heating oil prices can rise to 43%.
When Can We Expect Home Heating Prices To Fall?
The demand for natural gas, home heating oil, and electricity will remain high. According to industry experts, crude oil prices are expected to reach $100 per barrel in December 2022, with a peak in January 2023. The prices gradually fall throughout the spring, but this may take longer for homeowners to save money on heating costs.
Choose Suffolk Oil As Your Heating Oil Provider!
Whether you want to buy oil or want more information, speak with a reputable home heating oil company. You can’t afford to go wrong with your home’s heating, so you need a company with honest prices and dependable service you can rely on.
The home heating oil company Suffolk oil believes you deserve the best heating oil service at an affordable price. There are no hidden contracts or fees as we do not require a contract to keep our customers coming back.
We’re here to help you save money. Begin placing your order on your heating oil costs, you’ll see why we’re the best option for your home’s heating needs. Place your order today or contact us with any questions.