Crude and Heating Oil Analysis
Sunday 13th September 2020
Market Trends
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.
Distributor Analysis
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.
Keep an eye on your local price situation and get multiple quotes from heatingoilshop.com. Regularly check your tank & make sure you do not run out and top up where necessary. Save money by getting quotes from a heatingoilshop.com distributor and not incentivised brokers.
Distributor vs Broker Analysis
Average prices for distributors rose 0.02ppl to 26.27ppl. Average broker prices fell to 27.65ppl. The difference between average distributor heating oil prices versus average online heating oil broker prices today is 1.38ppl inc vat.
Savings fluctuate and depend on your postcode and any other charges made by brokers. For instance Boilerjuice™ charge an additional £3.49.and is applied to each order of heating oil or gas oil (red diesel) placed on their website or over the telephone. So always check what you are paying for
There are many bargains out there, especially from suppliers. Remember, savings can change in an instant!
Today’s Broker Analysis
Average broker prices are down to 27.65ppl today. As you can see from the above graph, some brokers are much more expensive than others. Fueltool continues to dominate the higher price areas as does TankTopper. Price differences are based on 1000 litres delivered in 5 days to the same randomly picked postcode.
In today’s case you would be paying as much as 5.31ppl or £53.10 more on your order going with Fueltool. For this reason, do you really want to pay over the odds by using higher priced brokers? We’ll let you decide for yourselves. (All prices include VAT and are subject to regional and postcode variations).
As a consequence, you would be better off comparing prices from heating oil distributors in your area using heatingoilshop.com. Remember, prices change regularly and are delivery postcode dependant.
Brokers charge a variety of commissions, surcharges & admin charges or a mixture of all and these affect your final bill. The graph above shows you seven day prices for brokers. Some of these quotes include delivery charges, commission and admin charges. All of which push up the PPL exclusive of VAT price.
Always check our daily twitterings on Twitter @ukheatingoils and follow us please.
For current price trends, head on over to heatingoilshop.com and get multiple #heatingoilquotes from suppliers to your area.
Please check out our post on heating oil tanks. Every heating oil user must be aware of their legal obligations and costs associated with heating oil spills and leakages
