Crude and Heating Oil Analysis
Sunday 27th September 2020
Market Trends
UK heating oil prices are flat. Fortunately for oil consumers they continue to be at a 4 Year low and 50% cheaper than this time last year. However, crude prices did gain value but fell back. Market prices are now trrading in a very narrow $40 – $42 band. The shortlived rebound occurred because of inventory draws and storm damage. Oil prices are probably set to fall as a second wave of COVID-19 is feared. European economies could possibly shut down again.UK Market Trends
At this moment, we see distributor prices remaining at these levels for a while. Most distributors are quoting between 25ppl to 28ppl. September’s new heating oil season did get off to a poor start with oil distributors and brokers cutting margins. The coming week should see prices remain static but tightly competitive. We are reasonably certain there will not be any great resurgence in heating oil prices next week.
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 0.04ppl finishing up at 26.66ppl. The UK heating oil price market remains stable. England – average prices rose by 0.04ppl to 26.86ppl. Scotland – average prices fell by 0.09ppl to 31.79ppl. Wales – average prices fell by 0.26ppl to 27.18ppl. Northern Ireland – average prices fell 0.01ppl to 24.80ppl. To keep advised on 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
During the last 7 days, average UK heating oil prices have been relatively flat. During this period they have only risen 0.04ppl. As the cooler weather approaches it remains to be seen if these prices can hold or creep up. At this moment in time, we do not see heating oil prices rising next week. Crude oil prices have started to lightly float in a tight band with little effect on the UK heating oil market. Despite the fact that prices are flat they are still 6ppl lower than 4 years ago when they were 33.63ppl. As such, 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 too. 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 0.04ppl to 26.66ppl on the week. To differentiate, average broker prices fell 0.38ppl to 27.97ppl. The difference between average distributor heating oil prices versus average online heating oil broker prices today is 1.31ppl 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. Furthermore, they do not tell you their commission rate as it is calculated into the PPL. So always check your final total. 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 27.97ppl today. As you can see from the above graph, some brokers are much more expensive than others. Tanktopper and Boilerjuice have higher prices in our random postcode check. 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 2.79ppl or £27.90 more on your 1000 litre order if placed with Tanktopper. 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). You would be better off comparing prices from heating oil distributors in your area using heatingoilshop.com. Remember, prices and savings 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.
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