What Affects The Price Of Heating Oil?

Why heating oil price fluctuations happen, and how to protect yourself.

heating oil price chart new yorkIf you use heating oil to keep your home here in the Hudson Valley warm, you know the price of heating oil can go up and down like a yo-yo, and sometimes they can change quickly over weeks, and sometimes even just days!

You may wonder why the price of your heating oil can fluctuate so dramatically. There are several reasons, and it is often a combination of them that affect how much you pay for your heating oil:

Global markets. Heating oil is made from crude oil, a globally traded commodity. The price of crude oil affects the price of your home’s heating oil. Many things can affect the price of crude oil, such as geopolitical conflicts involving oil-producing nations, and natural disasters that impact oil refining. One example of that is Hurricane Harvey in 2018, which disrupted refining along the Gulf Coast region of Texas.

Changing weather. About 90% of the heating oil used in the United States is used right here in the Northeast. As you know, winter weather can change from year to year, and month to month.  In a warmer than average winter, heating oil prices might drop; in a colder than average winter, prices will rise. By the way, this winter is predicted to be cold and snowy here in the Northeast according to the almanac!

Competition. If there are several heating oil delivery companies within close proximity, that competition can drive prices down. Unlike most of our competitors, Depew Energy is upfront about our pricing. We always post our daily heating oil prices to see exactly what you’ll pay.

Government policy. Government policies can be designed to encourage or minimize the use home heating oil; if heating oil production is expected to decline as the result of a new policy, heating oil prices will probably rise as supply diminishes. That’s especially true if the weather creates a higher demand for fuel.

How to protect yourself from heating oil price spikes

Your wallet doesn’t have to be at the mercy of the markets and other factors when it comes to how much you pay for your heating oil. Depew Energy offers pricing and payment options to help you take control of your heating oil costs.

Our Worry-Free Budget Plan lets you spread your heating oil costs over 11 even, easy monthly payments. If there are price spikes, they’re far easier to manage.

With Pre-Buy, you buy your heating oil for the winter at an agreed-upon price ahead of the heating season. Even if heating oil prices spike this winter, your price remains the same through the term of your contract.

Our Cap Price option sets an agreed-upon top price for heating oil. You won’t pay anything more than that capped price. But if prices fall below that capped price, your price will fall, too!

There’s still time to enroll in our Pre-Buy and Price Cap plans – as we’re taking applications until September 30th! If you’re interested, you can even enroll directly on our website!

Contact us to learn more about taking charge of your heating oil costs this season.

Depew Energy – a family-owned and operated business that started from one simple truck to now over 20! Located in Newburgh, NY, we’re the area’s go-to heat comfort specialist since 1998.