Crude and Heating Oil Analysis
Sunday 13th September 2020
UK Heating oil prices are the lowest they can get for now, and for the foreseeable future. As at the end of last week UK Heating oil prices continue to be at a 4 Year low. Consequently, crude prices remain relatively stable but started to move upwards. Crude Oil is now hovering around the $37 – $40 mark. This is $2 cheaper lower than this time last week. There are signs that we will see the crude oil price recover this coming week.
Bearish feelings have returned to the oil markets due to a small recovery in demand. As a result, oil prices climbed on Friday morning after earlier steep losses.
UK Market Trends
At this moment, domestic heating oil prices are better than this time 4 years ago. As a consequence of cheaper crude, heating oil prices are very low for now. Most distributors are quoting between 25ppl to 28ppl.
September’s new heating oil season has got off to a poor start with oil distributors and brokers cutting margins.
On Friday there were signs that UK heating oil prices may edge up in the coming week. However we are uncertain there will be any resurgence in heating oil prices until the end of September. The weather will be more autumnal with possible frosts and less daylight hours.
September’s new heating oil season has got off to a poor start with oil distributors and brokers cutting margins. We expect a resurgence in heating oil prices probably at the end of September as the weather changes.
UK Regional Analysis
Over the last 7 days there has been a decrease in the average UK oil distributor heating oil prices on the week of 1.01ppl finishing at 26.13ppl..
England – average prices fell by 1.13ppl to 25.92ppl.
Scotland – average prices fell by 0.83ppl to 31.45ppl.
Wales – average prices fell by 0.73ppl to 26.28ppl
Northern Ireland – average prices fell 0.92ppl to 25.08ppl.
To keep on top of heating oil prices we recommend checking in on our twitter feed. You can also request multiple quotes from heatingoilshop.com on a regular basis to avoid any possible imminent price rises.
Always fill heating oil tanks on lower price.
Over the last 7 days, UK heating oil prices have steadily fallen by as much as an average of 2.07ppl. It remains to be seen if these prices can be sustained especially when crude oil prices have started to move up.
We have not seen prices like this for just over 4 years when they were 33.63ppl. We highly recommend taking full advantage of the lower prices now.
The major key deciding factors on prices in the coming weeks will still be the price of crude oil. Availability of product, the weather or delivery issues can play a major part in heating oil prices.