Heating Oil price remains high

Spring is just around the corner

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.

Market Trends

Prices at close on Friday 12th February 2021

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

Heating oil price remains high.

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.

Heating oil price remains high.

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.

Distributor Analysis

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.

Heating oil price remains high.

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.

In other words, brokers are maximising their profit margins at your expense. They are charging more in commissions at this time of year. This is the one main reason not using a heating oil broker. On these numbers you would have paid an additional £49.50 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 47.89ppl today. As you can see from the graph below, some brokers are much more expensive than others.

Please remember that some brokers are other trading arms of larger distributor groups

As can be seen, today there is a 11.48ppl 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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