World events have left many markets volatile. From supply chain delays to the price of gas for your car, the past two years have been a challenge for all of us. Present events are now causing volatility in the heating oil market. And when the price of oil rises sharply, it hurts us all—including those of us who sell it.
Global crude oil prices soared to over $100 per barrel for the first time in eight years after Russia invaded Ukraine in February. As you probably know all too well by now, the price of crude oil goes is linked to the price you pay for gasoline, heating oil, and the many other products here in the Hudson Valley.
Even before the war in Ukraine accelerated price increases to an even greater degree, consumer spending—combined with persistent supply shortages—had already sent inflation rates in our country to their highest level in 40 years.
You’ll hear some pundits and politicians say, “we just have to drill for more oil at home.” In truth, that is a simplified and misinformed solution to the production shortfall.
Investors know that a zero-carbon emissions world is not too far off in our future. Big money is holding back on fossil fuel investments as legislators try to move the country toward more renewable energy. Investors are looking to sink their money into long-term, profitable opportunities in the burgeoning green energy field.
Local heating oil dealers like us are making excellent progress with making our fuel more dependent on renewable energy too. Click here to learn about Bioheat® fuel.
Another factor influencing oil companies is what happened in the spring of 2020 when crude oil prices fell all the way to negative $30 per barrel. Traders had to pay buyers to take oil! Since then, however, prices have been rising steadily. And then they exploded in late February after the Russian invasion of Ukraine.
But, proving just how much and how quickly things can change, crude oil prices have dropped under $100 per barrel again (as of mid-March). This was caused by a variety of factors, including the unexpected Covid-19 lockdowns in China, small signs of a possible diplomatic solution to the Ukraine conflict, and the biggest drop in four years of “bullish bets” on the market by hedgers.
To say that we are currently in the midst of an extremely volatile energy market would be an understatement.
Nothing is certain, but we certainly hope this spike is temporary. After all, what goes up must come down. And nothing will make us happier than when prices return to normal. Until then, know that Economy Oil remains dedicated to offering our customers quality heating oil at an unbeatable price.
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 Orange, Sullivan, and Ulster Counties. Click here to see if we’re in your neighborhood.
Economy Oil gives our customers the power to save as much as possible—even when the market is rapidly changing. Contact us today for quality heating oil in the Hudson Valley.
Economy Oil provides discount fuel oil to customers who want the power to save in Dutchess, Columbia, Orange, Sullivan, Delaware, Greene, and Ulster counties.
Figure out how much fuel you’ll need to order with this easy oil delivery calculator.
Economy Oil works with local Home Energy Assistance Programs (HEAP) to help you afford fuel.