Why Do Heating Oil Prices Change?
The variables behind the numbers
Now more than ever, you’re probably keeping a hawk’s eye on your finances. Prices are going up on a lot of the necessities of daily life, and so value matters even more. From the gas you put in your car to the milk you put in your fridge, you’ve probably felt the pinch of higher costs lately. Sadly, the cost of heating oil isn’t immune. It fluctuates as well. Even though it affects your budget either way, it can help to know the reasons behind any price fluctuations that are affecting your monthly bills. Here are some of the reasons heating oil prices fluctuate:
- The price of crude oil affects the price of heating oil. Actually, the price of crude oil is the single largest factor in how much heating oil costs. The price of crude oil accounts for up to 75% of the overall cost 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 affect the price of heating oil. About 90% of the heating oil used in the US is used in the Northeast. As someone who lives in the Hudson Valley, you know firsthand how variable the weather can be from one day, week, or month to the next. Because you live in a part of the country that experiences the extremes of all four seasons, the price you pay for heating oil price changes as the weather affects supply and demand. The longer or harsher the winter, the higher the heating oil prices get because demand is high, and supplies aren’t infinite. A shorter or milder winter means lower demand and correspondingly lower heating oil prices. Additionally, if the cost for alternative fuels changes, there’s usually a corresponding change in the demand for heating oil.
- Where you live affects the price of heating oil. If you’re fortunate enough to live in an area that’s supplied by a healthy number of heating oil companies, you can shop around for the best possible price. Since suppliers know that you have a choice, they’ll keep prices as low as possible to attract and keep you as a customer. When suppliers have to compete for your business, you benefit. Living near a shipping port is also advantageous because your provider doesn’t have additional transportation costs that have to be factored into their prices.
Economy Oil Means Quality and Value
Economy Oil offers quality heating oil delivery at the best price in the Hudson Valley. As our customer, you can choose same-day or next-day delivery. We make being an Economy Oil customer simple and straightforward. There are no hidden fees, service fees, or contracts. And we don’t engage in bait-and-switch pricing. Trust us to give you the best price. And if you manage to find a better price elsewhere, just call us and we’ll beat it.
Choose Economy Oil as your heating oil provider and rest assured that you’re getting a quality product for a great price. 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. Contact us today to start getting quality heating oil at the best price in the Hudson Valley.