Saturday 16th January 2021
Cold weather is keeping prices high. A continued or renewed cold wether pattern will determine your heating oil price well into February.
However, more 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.
Since our last report big gains have been made in Crude Oil prices. Coupled with the poor UK weather helped push up UK domestic heating oil prices.
Oil prices fell back on Friday over demand concerns. News that China has reported its highest Covid-19 case count in months weighed on market sentiment.
Cold weather is continuing to hit the UK. Now is the perfect time to make sure your tank has enough fuel to see you through the winter. Before you order fuel ensure you are getting the best possible prices by using heatingoilshoip.com for multiple quotes.
Other Market Factors
Oil prices shot up to a 10-month high, posting further gains in the wake of the OPEC+ cuts. They also edged a bit higher by a weaker dollar.
OPEC+ compliance slips to just 75%. OPEC+ group’s compliance with the oil production cuts fell to 75% in December 2020—one of the lowest levels since the pact was enacted in May 2020
UK Market Trends
Colder weather continues to dominate UK heating oil prices in January
Within the next 2 weeks a cold start is expected and wintry showers could be quite widespread. There is the potential for more prolonged spells of rain, sleet and snow through the week. The risk of snow is the greatest in the north. It could become milder at times in southern and central regions. Frosts are likely to be widespread and sharp on some nights.
Under these circumstances expect to see heating oil prices to remain high but, still some 20% lower than this time last year.
Ultimately, the good news is heating oil prices are still 20% cheaper than for the same period last year.
However, we see further demand for heating oil increasing as the weather stays colder until mid February.
At this moment in time, we see distributor prices remaining at today’s level with any movements restricted to 10ths of a penny. Most distributors are quoting between 36ppl to 40ppl. Brokers are much higher and in the range of 41ppl to 44ppl.
UK Regional Analysis
Colder weather is keeping prices higher. UK heating oil prices have increased by 2.23% this week. Over the last 7 days there has been an increase in the average UK oil distributor heating oil prices of 0.87ppl.
At the moment distributor heating oil prices are trending up.
England – average prices rose by 1.24ppl to 41.37ppl.
Wales – average prices fell by 0.82ppl to 42.47ppl.
Scotland – average prices rose by 1.01ppl to 44.70ppl.
Northern Ireland – average prices rose by 0.70ppl to 34.94ppl.
Of course, the colder conditions in some now all of the regions are affecting prices. At the present time we recommend you check your heating oil tank regularly. Also check our daily twitter feed @ukheatingoils. You can request multiple quotes from heatingoilshop.com on a regular basis to avoid any possible imminent price rises.
Colder weather and crude oil prices continue to determine heating oil prices.
During the last 7 days, UK heating oil prices have risen by 2.23% this week. This amounts to an average rise of just over ¾ of a penny after adjustments and vat.
Generally speaking we feel that UK heating oil prices may have reached their peak and will plateau this coming week. Ultimately, if crude oil prices rise there could be changes.
A continued cold spell into the third week of February could be a game changer.