Crude and Heating Oil Analysis
Saturday 3rd October 2020
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.
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.
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.
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.