What Determines the Cost of Heating Oil?
A Primer on Pricing
If you’re like most, you keep an eye on your budget. Prices on just about everything have seen some uncomfortable highs over the past few years. Groceries, gas, travel—just about everything costs more these days. Supply and demand along with some other factors affect how much it costs to manage. That includes the cost of heating oil. It helps to understand the factors affecting the price you pay for heating oil. But know that when you’re an Economy Oil customer, you’ve got the power to save. We offer quality heating oil at the best price in the Hudson Valley.
An Introduction to the Heating Oil Market
The heating oil you use in your Hudson Valley home is like any other commodity. There are a number of factors that affect how much it costs from day to day, week to week, or month to month. Let’s take a look at some of those factors so that you’ll have a better understanding of why you sometimes notice price fluctuations on your monthly bills.
Here are some of the factors that determine the cost of heating oil:
- The cost for crude oil: The price of crude oil has the largest and most direct effect on the price of heating oil. In fact, the price of crude oil is responsible for up to 75% of the price of heating oil. Additionally, 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: These basic principle of economics affect the cost of just about every commodity, including the cost of heating oil. In the case of heating oil, demand is usually determined by the weather. As a Hudson Valley resident, you know firsthand how variable the weather can be. 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. Conversely, the demand for heating oil decreases during the summer months.
- Location, location, location: Where you live affects how much things costs. That’s true of rent costs and housing prices as well as 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. As an Economy Oil customer, you benefit from our commitment to offering unbeatable prices.
Quality and affordability
Economy Oil offers the same high quality heating oil our competitors do, we simply do it at an unbeatable price. Enjoy same-day or next-day delivery as well as no hidden fees, service fees, or contracts. Our service area includes the upper Hudson Valley and Catskills regions.
Economy Oil gives our customers the power to save as much as possible—even when the market is rapidly changing. Contact Economy Oil today for quality heating oil at the best price.