Saturday 31st October 2020
Lockdown may cause heating oil delivery delays leading up to Christmas and possibly beyond due to Covid-19. For the most part, we sincerley hope this will not be the case. But ultimately we highly recommend getting heating oil quotes much earlier this year.
Last week had a definite feel of deja vu. It was a repeat performance from the two previous weeks. Oil trading markets prices tied again to “raise the bar” but with no success. Predictably, the small gains dissipated into ever stonger losses.
Oil prices plunged this week after spending months trapped in a narrow range around $40 per barrel. Renewed national lockdowns in France, Germany and now England rattled financial markets. The U.S. case count for covid-19 remained at record levels and may continue to rise.
Lockdowns are beginning to bite on demand concerns across Europe and, the near-term outlook for crude looks to deteriorate further.
Friday morning the market opened very much down. However, there was some modicom of comfort as the markets started to creep up.
Three of the biggest OPEC producers behind Saudi Arabia may not be on board with extending the current cuts into next year. Iraq, the United Arab Emirates (UAE), and Kuwait are reportedly not particularly inclined to support a rollover of the cuts of 7.7 million barrels per day (bpd), because such cuts are too deep for their economies and budget incomes to sustain.
Crude did recover slightly on Friday with Brent managing to reach $41.77. For the best part crude has traded at an average of $40 for the better part of four months. now for nearly 4 months.
UK Market Trends
Autumn distributor heating oil bargains are still to be had as we approach the Christmas periodfestivities. Some broker prices have been uncompetitve. Worthy of note though are homefuelsdirect and heatingoil club all of whom maintain a quality pricing structure. UK prices did rise mid week but quickly fell back by today.
Although the price fall of 0.31ppl is small the overall price did not fall below 28.17ppl. Take note, the heating oil price trend is currently flat to falling and is now more weather dependant than on crude oil pricing. Make no mistake, colder weather is on its way. We feel prices will start to rise in the first week of November!
Although prices continue to be at an all time 4 Year low, demand for heating oil is rising. The good news 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 colder, so, buy heating oil now and fill up.
Buying heating oil is all about timing! At this moment in time, we see distributor prices remaining at these levels for a at least 4 days. Most distributors are quoting between 26ppl to 30ppl.
UK Regional Analysis
UK heating oil prices have fallen by 1.09% this week. Over the last 7 days there has been a decrease in the average UK oil distributor heating oil prices on the week of 0.31ppl finishing up today at 28.17ppl.
At the moment distributor heating oil prices are trending flat to down.
England – average prices fell by 0.43ppl to 28.56ppl.
Wales – average prices fell by 1.10ppl to 28.67ppl.
Scotland – average prices fell by 0.08ppl to 32.74ppl.
Northern Ireland – average prices rose by 0.11ppl to 26.08ppl.
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. We’re not teaching our customers to suck eggs but always fill your heating oil tanks on lower prices.
During the last 7 days, UK heating oil prices have fallen by 1.09% this week. This amounts to an average fall of 0.31ppl after adjustment and vat.
For the time being, milder weather has arrived and while heating oil prices are trending down, 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 possibly falling more.
Again, crude oil prices floated higher mid week, fell back by Friday and still trade in a tight band. Growth in crude oil continues to be 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 28.17ppl is 21.18ppl lower than this day a year ago. Not only that, 4 years ago the price was 39.75ppl, 11.58ppl dearer. As such, this is a great opportunity to reduce heating (and cooking) costs subsatantially. Take 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.