Heating Oil Price Drop!
Heating oil prices are at their lowest in decades. Find out more below.
Why are heating oil prices so low?
Over the past few months we've seen the price of oil, and therefore the price of heating oil, plunge to lows not seen in decades.
The demand for heating oil during the Coronavirus crisis
As is often the case with oil prices it's closely linked to supply & demand. Whilst our customers use kerosene for heating their homes, oil and the fuels it's distilled into are also used for transport (petrol/deisel for motor vehicles and boats & kerosene in jetfuel). Given the global Coronavirus crisis transport has reduced, meaning demand for oil has also reduced.
Heating oil prices often decrease in Summer
Historically heating oil prices have dropped in summer months, again linked to demand as people don't need to heat their homes as much during summer. This could have also impacted heating oil prices.
The OPEC/Russia price war has affected heating oil prices
In the past when oil prices have fallen dramatically OPEC and Russia have agreed to cut production, therefore reducing supply, in an attempt to balance supply with demand and increase prices. Initially a cut couldn't be agreed which led to prices falling faster. Production cuts have now been agreed but it doesn't seem enough to match the significantly reduced demand.
Fill up your heating oil tank while prices are low
Although we can't guarantee that heating oil prices aren't going to fall further, prices are currently at all time low and so we'd highly recommend that our customers top up their heating oil tanks now. Remember, if you over order we'll automatically refund you the balance for the amount of oil.
Click the Instant Quote button below to get an accurate price for heating oil in your postcode.