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.
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.
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.