What Influences Heating Oil Prices?
4 Factors Drive the Price of Heating Oil
It’s a basic fact: Heating oil prices will always fluctuate. When heating oil prices are moderate, most people are just glad their bills are low. But when the price of heating oil goes up, the price of most everything also goes up, too. And that’s frustrating.
We know how important it is for you to have a dependable source for heating oil delivery that won’t break the bank, and we will always do our best to keep prices fair and transparent. While there’s very little we can do to control the cost of heating oil on the global market, delivering great value for our customers is important to us, and we strive to offer ways to help manage costs even when prices aren’t as low as we’d like.
There are four main factors that affect the price of heating oil.
1. The cost of crude oil.
Heating oil is derived from crude oil, which is why the price of crude oil has the largest impact on the price of heating oil. Because crude oil is a commodity—a raw material that can be bought or sold—its price is driven by the laws of supply and demand. That means the global economy and any issues that affect the supply of crude oil will affect how much you pay to heat your home. Geopolitical unrest or natural disasters like hurricanes can disrupt production and drive up prices.
2. Seasonal demand.
Heating oil prices always go up in winter, when demand is high. On the other hand, in summer, heating oil prices are at their lowest. We do our best to secure supplies for the winter when prices are low so we can pass those savings on to you, particularly through our pre-buy and fixed price plans. And, it’s why we recommend filling your tank in the spring or summer, to take advantage of lower pricing.
3. Regional operating costs.
Labor costs, transportation, and storage costs contribute to the price of heating oil just as they do for other businesses and industries. For example, when gasoline prices rise, we have to pay more both to get heating oil supplies delivered to us, and to run the trucks that deliver to you.
4. The weather.
In addition to seasonal demand, the weather can play a big role in heating oil prices. When temperatures plunge, even in another part of the country, increased demand can drive prices up for everyone. And, in areas like the northeast, supplies may be coming from much farther away, which takes longer and costs more. This increases anxiety about short-term supply and drives prices higher.
Casey Delivers Value
If you use heating oil in your home, you already know it’s a great value! Clean-burning and efficient, it provides steady, reliable heat energy at an affordable price. And as a Casey Energy customer, you understand that value isn’t just about rock-bottom prices. Real value comes from dependability, quality fuels, convenience, and personal service.
We deliver added value with every gallon, like convenient automatic delivery service which eliminates the need to monitor your tank levels. We also offer plenty of options to help you manage costs no matter what happens with prices or how cold it gets.
- Our Budget Pay plan spreads home heating oil costs over 11 months, so you can avoid bills that spike in the winter.
- Our Pre Pay Plan lets you lock in your price by buying your fuel for the year upfront. You take advantage of lower off-season pricing, and eliminate the worry about the price of fuel going up.
- Our Budget Pay with Price Cap plan lets you lock in a set price for the season. No matter what happens with fuel prices, your price won’t go over the fixed amount—and if prices fall, you’ll pay the lower price.
The Bottom Line
When you’re looking for a heating oil provider for your home or business, you want a company that puts customers first. That means offering true reliability, with products and services designed to make your life easier. To learn more or become a customer, contact us today.