What Influences Heating Oil Prices?
Written on: January 16, 2023
Important Info for Our Customers
If your family is like most, you’ve had to tighten the purse strings a bit over the past couple of years. Almost everyone’s budgets have felt the sting of increased prices for just about everything. The average American family spent more on Christmas presents, groceries, and gas for their car during the past year. A new year is here, but in most categories of household spending, prices continue to be higher than they’ve been in the past. That includes the cost of heating oil.
Understanding the Heating Oil Market
Heating oil is like most of the things you buy for your family and household in that there are a variety of factors that affect its cost. It can be helpful to understand those factors, especially when the price fluctuations have visible effect on your monthly bills.
What influences the price of heating oil? Here are some of the forces at play:
- The cost of crude oil: Of all the factors at play, the price of crude oil has the largest and most direct effect on the price of heating oil. The price of crude oil accounts for up to 75% of the price of heating oil. And because crude oil is an internationally traded commodity, it’s at the mercy of a number of variables and global market forces that are constantly in flux.
- Supply and demand: Together, supply and demand form a basic principle of economics. Demand is commonly affected by the weather. As a Hudson Valley resident, you know firsthand how variable the weather can be. We just had one of the most bitterly cold and blustery Christmases on record. Because you live in a part of the country that experiences the extremes of all four seasons, the price you pay for heating oil can change with the weather. During a long and harsh winter, you’ll see higher heating oil prices because demand is higher and the supply of heating oil isn’t limitless.
- Location: Where you live affects how much things costs. That’s true of the gas for your car and the heating oil you use in your home. Folks who live near a shipping port tend to see lower heating oil costs because their fuel provider doesn’t have additional transportation costs to pass along to the consumer. And if you’re fortunate enough to live in an area with several competing heating oil companies, you’ll pay less for heating oil because you can shop around for the best price. When suppliers have to compete for your business, you benefit. They will keep prices as low as they can to attract and keep customers.
The cost of heating oil may change, but as a Downey customer you get heating oil delivery you can count on and competitive and transparent heating oil pricing. And our cleaner-burning heating oil will help your heating system run as efficiently as possible. That means it will cost you less to keep your home warm. Our cleaner heating oil will also improve the longevity of your heating system. So you’ll save on repairs and prolong the need for a replacement.
Serving Dutchess County, Orange County, Putnam County and northern Westchester County, Downey Energy is the Hudson Valley’s leader for reliable heating oil delivery.
Contact Downey Energy today to learn more or to request a heating oil delivery.