Saturday 13th February 2021
Heating oil price remains high. Since our last post, cold weather really had an icy grip on most parts of the UK. During this period crude oil prices rose pushing UK heating oil prices higher. For now, we see prices stabilising and falling as milder climes arrive.
However, with that in mind it is wise for heating oil users to continually check their tank levels and get heating oil quotes from heatingoilshop.com when they need a top up.
Brent held above $61 per barrel on Friday, despite some headwinds from a slight strengthening of the dollar. WTI is also pushing to get over $60 barrier. However, analysts are now split on whether or not the rally has gone too far or has more room to run.
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 and well into Spring.
Other Market Factors
OPEC expects oil demand to rise by 5.8 million barrels per day (bpd) this year, down by around 100,000 bpd from last month’s projection due to lockdowns in major developed economies in the first half of this year, the cartel said on Thursday.
UK Market Trends
Colder weather continues to dominate parts of the UK heating oil prices in February.
As we predicted in our last episode we have seed some remarkably low temperatures with severe frosts and snow accumulations. This has had a great impact on UK heating oil prices
Next week should see a return to normal temperatures for this time of year. However, as crude oil prices remain high we expect to see heating oil prices level off and slowly fall as we approach Spring.
Most distributors are quoting between 39pl to 43ppl. Brokers are much higher and in the range of 41ppl to 44ppl.
UK Regional Analysis
UK heating oil prices have increased by 4.5% this week. Over the last 7 days there has been an increase in the average UK oil distributor heating oil prices of 1.85ppl.
At the moment distributor heating oil prices are trending up.
England – average prices up by 2.18ppl to 45.28ppl.
Wales – average prices up by 1.04ppl to 44.66ppl.
Scotland – average prices up by 2.10ppl to 46.67ppl.
Northern Ireland – average prices fell by 1.15ppl to 36.75ppl.
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.
Colder weather and crude oil prices continue to determine heating oil prices.
During the last 7 days, UK heating oil prices have increased by 4.50% this week. This amounts to an average rise of just over 1.85ppl 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. Crude oil prices have risen over the last week and may rise further.
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 42.94ppl is 0.98ppl lower than this day a year ago. Not only that, 4 years ago the price was 44.11ppl, 1.17ppl 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
Colder weather and crude oil prices is keeping prices high for the time being. Average prices for distributors rose 1.85ppl on the week. Similarly, average broker prices also rose by 1.89ppl.
To put it briefly, the difference between average distributor heating oil prices versus average online heating oil broker prices today is 4.95ppl inc vat.