Should you buy your Heating oil over the Summer Months? No Need for Storage? Save Yourself Thousands of Pounds Today!
The obvious answer is yes, because demand is less in the summer, therefore prices should be cheaper. Now is this an over simplification of the pricing strategy for heating oil, since it is subject to worldwide supply and demand? Certainly but the general rule still applies. Cheap heating oil is more readily available when the overall demand is low. What Drive’s Heating Oil Prices? Heating Oil is a commodity and is traded on the futures market by traders betting on the relationship between supply and demand at a fixed time in the future. Traders base their decisions to buy or sell on expectations of future oil demand versus current reserves and anticipated production. Future demand can be tricky to predict and reflects traders’ interpretations of economic growth indicators.
What are the Tea Leaves Telling Us?
Many people on both sides of the Atlantic have been concerned about the affects of the oil spill disaster in the Gulf of Mexico. No one is sure at this point both the full effect of the oil spill and the corresponding moratorium on drilling in relation to the UK’s supply of heating oil this winter. However, the supply of heating oil is not being adversely impacted at this time. Depending on the length and extent of the suspension on drilling by the U. S, prices could be negatively affected in the future. That anticipated impact may be minimised to some degree by the current economic indicators, which are leaning toward moderate growth with no real signs of a significant increase in activity. While we would all like to see this improve, in the short term, it could restrain demand until production is restored.
What should you do as a consumer regarding heating oil?
As with most things in life, planning ahead usually renders the best results. Heating oil suppliers have to buy the oil as well, so the better they can plan their needs, the better bargaining position they can assume. This applies to consumers as well, when planning for this coming winter. If you are looking for a heating oil supplier, contact the UK’s national and local Supplier Birmingham Fuel Oils to discuss your coming needs. They will provide you with the best plan to minimise your cost and still be prepared, regardless of the severity of the season. Birmingham Fuel Oils has the resources and a fleet of trucks to meet your needs, no matter how large or small, and they will always be there when you need them the most.