Heating oil prices start to move up

Saturday 7th November2020

Heating oil prices start to move up as lockdown, possible delivery delays and cold weather approaches.

Our concerns are for delivery delays leading up to Christmas starting much earlier than last year due to Covid-19. For the most part, we sincerley hope this will not be the case. But ultimately Christmas deliveries do put pressure on distributors. We highly recommend getting heating oil quotes much earlier this year.

Market Trends

And so the feeling of deja vu continues. This was the fourth week in a row a repeat performance in the markets. Oil trading markets prices tried again to “raise the bar” but with no success. Predictably, the small gains dissipated but not as much as previous weeks.

It has not been the US Presidential race (still unresolved as we write) that has affected the markets. Oil prices have slid because of Covid-19.

If Biden wins he will have his hands full with multiple crises – the pandemic, unemployment, climate change, and deep political division.

Coronavirus cases continue to surge in the U.S. and Europe, and nationwide lockdowns in several European countries will drag down demand. The U.S. surpassed 120,000 cases in a single day on Thursday.

Oil prices contine to trade in a narrow range around $40 per barrel. mOPEC+ is still wrestling with partners and conscience as to what to do next as tjheir own economies suffer.

crude oil prices at close on 6th November

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 prices are still 42% cheaper than for the same period last year. Bargains are still to be had as we approach the Christmas festivities. However, as we edge towards Christmas and Winter we find prices are moving up.

Heating oil prices start to move up. Overall, heating oil distributor prices rose 0.46ppl on the week. The lowest price to be had was on Tuesday when it was 27.79ppl. Take note, the heating oil price trend is now rising in anticipation of colder weather and possible supply issues during lockdown. Make no mistake, colder weather is on its way late November early December. We feel prices will continue to rise gradually and in small amounts!

Most broker prices have settled down after being uncompetitve. They are now trading in a tighter band of 28ppl to 31ppl. Brokers worthy of note are homefuelsdirect, and the 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!

historical vs current UK heatingoil prices
2019 and 2020 prices comapred for the same period

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 42% 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 27ppl to 29ppl.

UK Regional Analysis

UK heating oil prices have increased by 1.65% 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 0.46ppl finishing up today at 28.41ppl.

UK Regional heating oil prices start to move up

At the moment distributor heating oil prices are trending up.

England – average prices rose by 0.55ppl to 28.77ppl.

Wales – average prices rose by 0.28ppl to 28.79ppl.

Scotland – average prices fell by 0.46ppl to 32.37ppl.

Northern Ireland – average prices rose by 0.01ppl to 26.01ppl.

Heating oil prices start to move up and 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 risen by 1.65% this week. This amounts to an average rise of 0.46ppl after adjustment and vat.

For the time being, milder weather has arrived but heating oil prices are now trending up, despite falling crude oil prices. At this moment in time, we see domestic prices possibly rising in small amounts as distributors test the market.

We could also see prices rise due to delivery days and an anticipated colder spell at the end of the month.

UK heating oil distributor prices start to move up

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 28.41ppl is 21.09ppl lower than this day a year ago. Not only that, 4 years ago the price was 38.88ppl, 10.47ppl 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.

Heating oil prices start to move up so keep an eye on your local price situation. 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 rose 1.46ppl to 28.41ppl on the week. Similarly, average broker prices also rose by 1.13ppl to 29.73ppl.

The difference between average distributor heating oil prices versus average online heating oil broker prices today is 1.32ppl inc vat.

UK heating oil distributor prices start to move up

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 29.73ppl today. As you can see from the graph below, some brokers are much more expensive than others. But, today there is only 1.78ppl difference separating the higher and lower priced brokers in our random postcode check.

Consequently, and fortunately for you, there are plenty of cheaper 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 07/11/2020

In today’s case you would be paying as much as 1.78ppl or £17.80 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.

UK heating oil prices start to move up

Summary

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

We are encouraging all customers to get heating oil quotes & order ahead where possible. A combination of dropping temperatures, lockdown & festivities combined may result in longer delivery times & higher prices.

The coming week should see a steady but minute rises in heating oil prices. 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.

Do not copy any content or images without our consent. Copyright © 2012-2020