Lockdown may cause heating oil delivery delays!

A fresh heating oil delivery made to a customer near you

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.

Market Trends

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.

Crudeoil prices as at 31102020

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!

this year, last year heating oil comparison

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.

UK heatingh oil prices for week ending 31/10/2020

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.

Distributor Analysis

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.

UK distributor heating oil price

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.

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.

Be aware that lockdown may cause heating oil delivery delays so anticpate buying fuel well in advance.

Distributor vs Broker Analysis

Average prices for distributors fell 0.31ppl to 28.17ppl on the week. Similarly, average broker prices also fell by 1.96ppl to 28.98ppl.

The difference between average distributor heating oil prices versus average online heating oil broker prices today is 0.81ppl inc vat.

distributor vs broker heating oil prices end of October 2020

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 down to 28.98ppl today. As you can see from the graph below, some brokers are much more expensive than others. Tanktopper™© Fueltool™© and DirectOil™© have higher prices in our random postcode check.

Consequently, and fortunately for you, there are plenty of 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.

broker prices 31/10/2020

In today’s case you would be paying as much as 5.46ppl or £54.60 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

Lockdown may cause heating oil delivery delays due to Covid 19. Buying heating oil is all about timing! You would be better off comparing prices from heating oil distributors in your area by using heatingoilshop.com and getting it delivered on time. Remember, prices and savings change regularly and are delivery postcode dependant.

7 day individual broker heating oil price

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.

Buy heating oil now

Summary

Lockdown may cause heating oil delivery delays due to Covid 19.

The coming week should see a stabilisation of heating oil prices. We think there could be a mid-week price rise. However, we are reasonably certain there will not be any great resurgence in heating oil prices next week.

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.

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