Crude and Heating Oil Analysis
Sunday 20th September 2020
UK Heating oil prices have started to move up in line with the Crude Oil Market . As at the end of last week UK Heating oil prices still continue to be at a 4 Year low. However, crude prices gained $3 to $4. It is is now hovering around the $41 – $43 mark. We predicted last Sunday that crude oil prices will recover.
Saudi Arabia’s Energy Minister is reputed to have said that those who gamble on the oil markets will be “will be ouching like hell”. He said this knowing there is fading global demand – in the wake of a ‘second wave’ of coronavirus infections. This suggests to us that crude oil, despite its gains this week is at risk of reversing lower.
As a result of the energy ministers “veiled threats” , oil prices climbed on Friday morning and look set to level off early this coming week.
UK Market Trends
At this moment, domestic heating oil prices are still better than this time 4 years ago. The ramifications of higher crude has seen UK heating oil prices rise today. Despite the rise heating oil prices are still very low. Most distributors are quoting between 26ppl to 29ppl.
September’s new heating oil season did get off to a poor start with oil distributors and brokers cutting margins. To some extent, higher prices will bring back lost margins for a while.
On Thursday there were signs that UK heating oil prices were, and did edge upwards. The vcoming week should see prices level off at the higher level. However we are certain there will not be any resurgence in heating oil prices next week.
The ramifications of the sabre rattling of the Saudi’s Energy Ministers words seem to have fallen of deaf market ears. And for that purpose we believe crude will fall again.
UK Regional Analysis
Over the last 7 days there has been an increase in the average UK oil distributor heating oil prices on the week of 1.09ppl finishing at 27.30ppl.
England – average prices rose by 1.40ppl to 27.41ppl.
Scotland – average prices rose by 0.98ppl to 32.57ppl.
Wales – average prices rose by 1.670ppl to 28.06ppl
Northern Ireland – average prices rose 0.35ppl to 25.48ppl.
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 risen since Thursday by as much as an average of 1.14ppl. It remains to be seen if these prices will continue upwards. Crude oil prices have started to move up, nevertheless, we do not see heating oil prices rising next week.
Despite the fact that prices are rising slightly they are still 6ppl lower than 4 years ago when they were 33.63ppl. We highly recommend taking full advantage of the lower prices now.