Saturday 10th October 2020
Market Trends
Heating oil prices have risen by 5.6% this week.
Oil trading markets prices posted strong gains this past week. Friday morning the market opened slightly down. However, WTI was trading at nearly $41 and Brent was close to $43. Crude oil closed up 9.6% on the week as oil production in the Gulf of Mexico shut down due to an impending storm.
Hurricane Delta made landfall in the US state of Louisiana last night. The state is still recovering from the damage caused by a previous hurricane in August..
UK Market Trends
Autumn heating oil bargains are still available this weekend despite UK prices rising 1.51ppl in 7 days. Take note though, heating oil price trend is rising.
Although prices continue to be at an all time 4 Year low, demand is rising. The good news as at today is that prices are around 47% cheaper than this time last year. Inevitably, we will see further demand for heating oil increasing as the weather becomes cooler.
At this moment, we see distributor prices remaining at these levels for a while. Most distributors and brokers are quoting between 26ppl to 32ppl.
There has been some recovery in the UK market and oil distributors are still very keen with their pricing and hoping to gain your business.
UK Regional Analysis
UK heating oil prices have risen by 5.6% this week. Over the last 7 days there has been an increase in the average UK oil distributor heating oil prices on the week of 1.51ppl finishing up at 28.30ppl.
The distributor heating oil price market is rising slightly.
England – average prices rose by 1.58ppl to 28.67ppl.
Scotland – average prices fell by 1.35ppl to 32.63ppl.
Wales – average prices rose by 1.89ppl to 29.09ppl.
Northern Ireland – average prices rose by 1.32ppl to 26.24ppl.
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, UK heating oil prices have risen by 5.6% this week. This amounts to an average rise of 1.51ppl after adjustment and vat.
Cooler weather has arrived and while heating oil prices creep up rising crude oil prices may push UK prices are higher. At this moment in time, we do not see any signs of a price hike next week, more a stabilisation.
Crude oil prices are floating higher, but still in a tight band. It should restrict growth in crude oil prices next week. At the same we hope it will have little effect on the UK heating oil market.
Despite the fact that prices are flat they are 12.0ppl lower than 4 years ago when they were 40.3ppl. 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 1.51ppl to 28.3ppl on the week. To differentiate, average broker prices rose 2.10ppl to 30.10ppl.
The difference between average distributor heating oil prices versus average online heating oil broker prices today is 1.80ppl 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 up to 30.10ppl today. As you can see from the graph below, some brokers are much more expensive than others. FuelTool™© Tanktopper™© and Boilerjuice©™ have higher prices in our random postcode check.
Consequently, and 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.
In today’s case you would be paying as much as 4.16ppl or £41.69 more on your 1000 litre order. 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.
Fortunately for heating oil consumers there are plenty of Autumn heating oil bargains around the country.
Summary
The coming week should see a stabilisation of heating oil prices and competition heating up. The pun was intended. We are reasonably certain there will not be any great resurgence in heating oil prices next week.
However, For current price trends, head on over to our main website at 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.
We would like to draw your attention to an initiative by UKIFDA to keep our elderly, especially those over 75 years comfotable this winter. You can read all about it here.
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.
