Heating Oil prices fall as Spring approaches

Spring is just around the corner

Tuesday 2nd February 2021

Heating Oil prices fall. Spring cautiously approaches.

Cold weather kept prices high but have now stabilised and are starting to fall. In some parts of the country the renewed cold weather will determine your heating oil price well into February.

However, with that in mind it is wise for heating oil users to continual check their tank levels and get heating oil quotes from heatingoilshop.com when they need a top up.

Market Trends

Prices at 1:45pm 2nd February 2021

Since our last report there have been big gains in Crude Oil prices. This, coupled with the poor UK weather in January helped push up UK domestic heating oil prices.

As crude oil prices seem to be moving up quite fast, now is the perfect time to make sure your tank has enough fuel to see you through the rest of winter. Before you order fuel ensure you are getting the best possible prices by using heatingoilshoip.com for multiple quotes.

Other Market Factors

New vaccines from both Johnson & Johnson and Novavax have added to bullish sentiment in oil markets as hopes of a return to normal grow.

UK Market Trends

Colder weather continues to dominate part of the UK heating oil prices in February.

Heating Oil prices fall as Spring cautiously approaches. But, next week will see a cold or very cold start. There should be a good deal of dry weather but snow showers are likely in the north and east. Some of them could be heavy, leading to accumulations in places. Nighttime frosts are expected to be widespread and severe in places. Later in the period outbreaks of rain, sleet and snow perhaps push into southern counties as it begins to turn somewhat milder. The north becomes dry but remains very cold.

Heating Oil prices fall as Spring cautiously approaches

Under these circumstances expect to see heating oil prices to remain at today’s level.

Ultimately, the good news is heating oil prices are still 12% cheaper than for the same period last year.

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 37ppl to 41ppl. Brokers are much higher and in the range of 41ppl to 44ppl.

UK Regional Analysis

Colder weather and crude prices are keeping domestic prices higher. UK heating oil prices have decreased by 0.78% this week. Over the last 7 days there has been an decrease in the average UK oil distributor heating oil prices of 0.31ppl.

Heating Oil prices fall as Spring cautiously approaches

At the moment distributor heating oil prices are trending down.

England – average prices down by 0.42ppl to 40.87ppl.

Wales – average prices fell by 0.57ppl to 42.81ppl.

Scotland – average prices down by 0.27ppl to 44.61ppl.

Northern Ireland – average prices fell by 0.03ppl to 34.75ppl.

Of course, the colder conditions in some of our 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.

Distributor Analysis

Colder weather and crude oil prices continue to determine heating oil prices.

During the last 7 days, UK heating oil prices have fallen by 0.78% this week. This amounts to an average rise of just over 0.31ppl a penny after adjustments and vat.

Generally speaking we feel that UK heating oil prices have reached their peak and are now starting to fall as meterological winter wanes and spring approaches. Ultimately, if crude oil prices rise further there could be changes.

The continued cold spell in some parts of the country into the third week of February could be a game changer.

As of today, the UK heating Oil price of 39.54ppl is 5.40ppl lower than this day a year ago. Not only that, 4 years ago the price was 44.14ppl, 4.60ppl dearer.

As such, this is still a great opportunity to reduce heating costs substantially. Take full advantage of the lower prices now and save. Buy heating oil now as cold weather is on its way!

Distributor vs Broker Analysis

Heating Oil prices fall as Spring cautiously approaches. Colder weather and crude oil prices is keeping prices high for the time being. Average prices for distributors fell 0.16ppl on the week. Similarly, average broker prices also rose by 0.39ppl.

To put it briefly, the difference between average distributor heating oil prices versus average online heating oil broker prices today is 2.85ppl inc vat.

In other words, brokers are maximising their profit margins at your expense. They are more concerned with this than your loyalty. This is the one main reason not to use a heating oil broker. On these numbers you would have paid an additional £28.50 on a 1000 litre delivery.

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, brokers do not tell you their commission rate as it is calculated into the PPL. So always ask and check your final total. There are many bargains out there, especially from suppliers.

Today’s Broker Analysis

Average broker prices are up to 42.41ppl today. As you can see from the graph below, some brokers are much more expensive than others.

As can be seen, today there is a 6.00ppl difference separating the higher and lower priced brokers in our random postcode check.

We are not sure why there is such a discrepancy between prices at the same postcode. However, 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.

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 our site heatingoilshop.com.

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.

As you can see, there are some brokers that are consistently higher priced than others.

Fortunately for heating oil consumers there are plenty of heating oil distributor bargains around the country.

Heating Oil prices fall as Spring cautiously approaches

Things to do

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.

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.

Summary

Heating Oil prices fall as Spring cautiously approaches. But, colder weather is keeping prices high. We are encouraging all customers to get multiple heating oil quotes & order on the best price possible. A combination of dropping temperatures, tiered lockdowns will result in longer delivery times & probably higher prices.

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