Autumn Heating Oil Bargains

It's Autumn have you checked your heating oil tank

Crude and Heating Oil Analysis

Saturday 3rd October 2020

crude and heating oil markets

Market Trends

Autumn heating oil bargains are out there this weekend as UK prices remain flat. Prices continue to be at a subdued 4 Year low and 50% cheaper than this time last year.

However, crude prices did gain some value this week. Despite this, the market dived over Thursday and Friday. As a consequence crude oil market prices are trading in a much lower and narrower $37 – $39 band.

Downturns in the market occurred because Covid-19 cases around the world increasing like to cause long term damage to demand.

At the same time, the US President tested positive for COVID-19. The US fiscal stimulus package negotiators failed to agree a deal to speed recovery. On top of all that, OPEC showed that rising global oil output threatens to destroy the weak price recovery.

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.

Balanced against the poor start to the heating oil season, there has been some recovery with oil distributors cutting margins to gain business.

The coming week should see much of the same as last week. Prices remain 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 just 0.17ppl finishing up at 26.88ppl.

heating oil prices this week

The distributor heating oil price market remains relatively stable.

England – average prices rose by 0.21ppl to 27.15ppl.

Scotland – average prices fell by 0.10ppl to 31.68ppl.

Wales – average prices rose by 0.11ppl to 27.32ppl.

Northern Ireland – average prices rose by 0.15ppl to 24.95ppl.

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 0.17ppl after adjustment and vat.

Cooler weather has arrived and while heating oil prices creep up falling crude oil prices are keeping them low.  At this moment in time, we do not see any signs of a price hike next week.

Distributor average heating oil prices 3rd October 2020

Crude oil prices are floating in a very tight band. It is restricting any growth in crude oil prices and is having 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 heating oil 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 0.17ppl to 26.88ppl on the week. To differentiate, average broker prices rose 0.97ppl to 28.94ppl.

The difference between average distributor heating oil prices versus average online heating oil broker prices today is 2.06ppl inc vat.

There is sufficient evidence to suggest that some brokers have a knee jerk reaction to when crude oil prices rise momentarily.

heating oil distributor versus broker brices today

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 up to 28.94ppl today. As you can see from the graph, some brokers are much more expensive than others. Tanktopper and Heatingoil.co.uk (Certas) have higher prices in our random postcode check.

Consequently, our averages for this particular weekend have distorted our average numbers. However, fortunately for you there are plenty of Autumn heating oil bargains from distributors around the country.

Price difference calculations are based on 1000 litres delivered in 5 days to the same randomly picked postcode.

Heating oil distributor versus broker Prices - Last 7 days

In today’s case you would be paying as much as 8.19ppl or £81.90 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).

Avoid Brokers

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.

Heating oil 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.

home heating oil prices are still down get heating oil quotes

Fortunately for heating oil consumers there are plenty of Autumn heating oil bargains around the country.

heating oil shop for multiple quotes

For current price trends, head on over to heatingoilshop.com and get multiple heating oil quotes from suppliers to your area.

Always check our daily postings on Twitter @ukheatingoils and keep up with prices and events. You are most welcome and encouraged to follow us.

Also check out our post on heating oil tanks and new legislation regarding heating oil boilers. Every heating oil user must be aware of the these changes in legislation and costs associated with heating oil spills and leakages.

There is also a very nice piece about whether or not the heating oil is the cheapest fuel. Click here.

 

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