Saturday 21st November2020
Order your heating oil in time for Christmas.
Over the last two months heating oil prices have been trending up in anticipation of higher prices as the Christmas rush starts. However, there are factors that affect the day to day movement of prices as lockdown prevails for another two weeks. As a consequence there is a possible extension in the lead times for deliveries. Delays are also possible as colder 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. Ultimately, Christmas deliveries do put pressure on distributors and we highly recommend getting heating oil quotes and orders in much earlier this year.
Market Trends
Oil prices continued to surge last week on enormously optimistic vaccine news. But prices did remain confident as the week wore on, as the short-term Covid-19 outlook continues to darken.
In the UK vaccines won’t be widely available until early next year. UK lockdowns are set to end but, a tougher tier system put in its place.
Crude is still set to close out the week with price gains, and the short-run outlook is pessimistic.
Crude did recover slightly on Friday with Brent managing to reach $44.66. and WTI $42.08. Heating Oil is up on the week but closed down at $1.281.
UK Market Trends
Distributor heating oil prices are still 40% cheaper than for the same period last year. Bargains are to be had but may evaporate as we approach the Christmas festivities. However, as we edge towards Christmas and Winter we find prices are creeping up also moving up.
Heating oil prices rise as the Christmas rush starts. Order your heating oil in time for Christmas.
Overall, heating oil distributor prices rose 1.17ppl on the week. The lowest price to be had was on Tuesday when it was 28.58ppl. 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!
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 40% cheaper than this time last year. Inevitably, as we see demand for heating oil increase so will prices and delivery delays. So, buy heating oil now and fill up.
Buying heating oil is all about timing! At this moment in time, we see distributor prices starting to gradually rise over the next 3 weeks. Most UK distributors are quoting between 28ppl to 30ppl depending on where you live.
UK Regional Analysis
UK heating oil prices have increased by 0.87% 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 0.26ppl finishing up today at 30.04ppl.
At the moment distributor heating oil prices are trending up.
England – average prices fell by 0.08ppl to 30.79ppl.
Wales – average prices rose by 1.62ppl to 32.63ppl.
Scotland – average prices rose by 0.76ppl to 34.57ppl.
Northern Ireland – average prices rose by 0.44ppl to 26.77ppl.
Heating oil prices are continue to move up but look to swtabilise at the higher level next week. To keep advised on heating oil prices we recommend checking in on our twitter feed on @ukheatingoils.
You can also request multiple quotes from heatingoilshop.com on a regular basis to avoid any possible imminent price rises. Always fill your heating oil tanks on lower prices that are lower than last years.
Distributor Analysis
During the last 7 days, UK heating oil prices have risen by 0.78% this week. This amounts to an average rise of 0.26ppl after adjustment and vat.
For the time being, heating oil prices are trending up. However, we see this trend increasing the middle of next week. At this point in time, we do see domestic prices rising as we get into the Christmas rush. Order your heating oil in time for Christmas.
Another factor we see affecting prices could be an extension in delivery days. There is also the threat of an anticipated colder spell at the end of November into the first week of December.
As of today, the UK heating Oil price of 30.04ppl is 19.41ppl lower than this day a year ago. Not only that, 4 years ago the price was 39.46ppl, 9.42ppl dearer. As such, this is still 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 and prices rise!
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.
Crude Oil prices have started to move up so keep an eye on your local price heating oil 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 0.26ppl to 30.04ppl on the week. On the other hand, average broker prices rose by 0.17ppl to 32.36ppl.
The difference between average distributor heating oil prices versus average online heating oil broker prices today is 2.32ppl 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
Heating oil prices rise have started to rise. And as you would expect, average broker prices are up to 32.36ppl today. As you can see from the graph below, some brokers are much more expensive than others. But, today there is only 3.45ppl 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.
In today’s case you would be paying as much as 3.45ppl or £34.50 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
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.
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
Heating oil prices will rise as Christmas approaches, lockdown prevails and the possibility of heating oil delivery delays.
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 rises in heating oil prices as Crude prices rise. However, we are not confident there will not be steeper rises in heating oil prices in the middle of 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.
Other Items
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.
Thank you for reading.
