Sunday 3rd January 2021
Colder weather will determine your heating oil price in the first month of the New Year.
The mad rush for getting heating oil delivered in time for Christmas is over. However, the cold weather is forecasted for this week will see heating oil users checking their tank levels probably buying fuel at higher prices.
Not surprisingly, if the weather worsens as we progress through winter fuel deliveries will put pressures on a distributor’s logistics.
Crude Oil prices seesawed back and forth over the past two weeks, sandwiched between very strong bullish and bearish forces on each side.
Covid-19 is at its worst in many parts of the world, but vaccinations are picking up in earnest as well.
Other Market Factors
Brent edged back above $51 per barrel after the house passed a major stimulus bill on Monday evening. Considering that markets have been fluctuating it is felt that the New Year should see support today from broader risk markets as stocks are soaring on the prospects of larger stimulus checks.
Meanwhile, it looks like the OPEC+ deal could be tweaked. The terms of the OPEC+ production pact could be revised if oil demand recovers faster in 2021 than expected.
UK Market Trends
Colder weather will determine your heating oil price in first month of the New Year.
Regardless of the time year putting a big strain on all heating oil distributors prices have remained pretty much stable since mid December.
The combination of delay and wait tactics combined with higher crude prices did sent local heating oil prices higher.
Under these circumstances you wouild expect local distributor heating oil prices to fall. To be fair, they did for a while, but with the colder weather with us for the next 8-10 weeks we are seeing heating oil prices rising gradually.
It would be worthy of note to say that crude prices are the highest they have been for a while. Markets will need to be watched an analysed in the coming week or two.
Ultimately, the good news is heating oil prices are still 27% cheaper than for the same period last year.
Although prices continue to be at an all time 4 Year low, we see further demand for heating oil increasing as the weather becomes colder. Buy heating oil now and fill up.
At this moment in time, we see distributor prices gradually rising during the next 10 days. Most distributors are quoting between 36ppl to 40ppl and brokers are much higher.
UK Regional Analysis
UK heating oil prices have increased by 1.30% this week. Over the last 7 days there has been an increase in the average UK oil distributor heating oil prices of 0.48ppl.
At the moment distributor heating oil prices are trending up.
England – average prices rose by 0.63ppl to 38.52ppl.
Wales – average prices rose by 0.47ppl to 41.71ppl.
Scotland – average prices rose by 1.00ppl to 42.59ppl.
Northern Ireland – average prices rose by 0.04ppl to 33.17ppl.
Of course, the colder conditions in some of the regions are affecting prices. At the present time we recommend you check in on our twitter feed and website. You can request multiple quotes from heatingoilshop.com on a regular basis to avoid any possible imminent price rises.
Colder weather will determine heating oil price in first month of New Year.
During the last 7 days, UK heating oil prices have risen by 1.30% this week. This amounts to an average rise of just under ½ a penny after adjustment and vat.
Heating oil prices are starting to trend up again as Brent crude stays above the $51 mark.