Saturday 17th October 2020
Buy heating oil now as cold weather is on its way!
Oil trading markets prices posted very strong gains mid week but failed to maintain the momentum and fell back. Just like the previous week, Friday morning the market opened slightly down. However, WTI was trading at nearly $41 and Brent was close to $43.
Oil prices retreated once again on concerns about a second wave in Europe and a third wave in the U.S.
The OPEC, non-OPEC alliance seems to be in some disarray and says the group will guard against another price slide. Tensions within the cartel are mounting. OPEC production cut compliance is still around 100 percent. We are expecting issues with Libya and Russia to emerge in the coming months.
UK Market Trends
Autumn heating oil bargains are still available this weekend despite UK prices rising last week. Although the price rise of 0.18ppl is small the overall price did not fall below 28.30ppl. Take note, the heating oil price trend is flat to rising and is weather dependant. Make no mistake, colder weather is on its way at the end of the month and the price will rise!
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 43% cheaper than this time last year. Inevitably, we will see further demand for heating oil increasing as the weather becomes cooler, so, buy heating oil now cold
At this moment, we see distributor prices remaining at these levels for a while. Most distributors and brokers are quoting between 27ppl to 34ppl.
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.
One worrying trend that we have heard, but not substantiated, is that heating fuels may start to be delayed due to Covid19 related issues.
UK Regional Analysis
UK heating oil prices have risen by 0.64% 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 0.18ppl finishing up at 28.48ppl.
At the moment distributor heating oil prices are quite stable.
England – average prices rose by 0.21ppl to 28.95ppl.
Wales – average prices rose by 0.14ppl to 29.32ppl.
Scotland – average prices rose by 0.13ppl to 32.70ppl.
Northern Ireland – average prices fell by 0.09ppl to 26.00ppl.
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, UK heating oil prices have risen by 0.64% this week. This amounts to an average rise of 0.18ppl after adjustment and vat.
Cooler weather has arrived and while heating oil prices are flat, falling crude oil prices may push UK prices lower. At this moment in time, we are in a holding position and we see domestic prices stabilising.
Crude oil prices floated higher mid week, fell back by Fridayand still trade in a tight band. Growth in crude oil has been severely restricted. We see no change for the coming weeks. Any small movements will have little effect on the UK heating oil market.
As of today, the UK heating Oil price of 28.48ppl is 12.41ppl lower than 4 years ago when they were 40.89ppl. As such, we highly recommend taking full advantage of the lower prices now. Buy heating oil now as cold weather is on its way!
The major key deciding factors on prices in the coming weeks will still be the price of crude oil. Availability of product, colder weather and delivery issues will play a major role in low heating oil prices continuing.
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.