What Affects Heating Oil Prices?
Have you ever gone to the gas pump and been shocked that the price is much higher than it was just last week? Heating oil prices vary in similar ways. While you might not pay attention to oil prices, you almost certainly want to save money on heating costs this winter. Listed below are some of the reasons for the variation in heating oil prices.
Time and Place
- Seasons Changing: As with most other commodities, the price of oil will increase with the demand for it. Generally, you will see heating oil prices at their highest during the winter months, when demand is at its highest level!
- Where you live- The Local Market: Competition among different suppliers in the region can have a large impact on the price of heating oil in your area. Are you living in a rural area with fewer competing suppliers? You may be paying more than those living in bigger metropolitan areas with more competition.
- Crude Oil Price Changes: The price of crude oil generally dictates the cost of heating oil. Many different factors can affect the price of crude oil around the world. These range from political maneuvers to weather events.
- Cost of Regional Operating: Factors such as transportation of heating oil and how difficult it may be to reach your area may also impact the cost of heating oil. Additionally, higher operating costs in your area may also be passed on as higher oil prices to you as the consumer.
Generally, variations in the cost of heating oil will be small. However, large winter storms or a sudden drop in temperature may have a greater impact on the price of heating oil.
Do you have more questions about heating oil prices in your area? If so, it’s time to contact Robert B. Payne, Inc. today at 540-373-5876. Here at Robert B. Payne, Inc. our team of AC specialists can help you learn how to save money on heating your home. The Robert B. Payne, Inc. team is always more than happy to help answer your questions and offer our assistance. We look forward to speaking with you!