Spring heating oil prices

Spring heating oil prices

Wenesday 3rd March 2021

Spring heating oil prices are falling. Since our last post, the cold weather had an icy grip on most parts of the UK. During this period crude oil prices rose pushing UK heating oil prices higher.

Thankfully, the weather is considerably much more milder and agreeable. There are some cold snaps coming along but these are isolated and will be short lived.

However, with that in mind it is wise for heating oil users to check their tank levels. We estimate that during the recent cold spell, homes (dependant on size) have used between 100/200 litres of heatingoil If you have less than 25% of oil in your tank look at getting multiple oil quotes from us bit.ly/3qSvQ3e

Market Trends

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Prices at 13:45 Wednesday 3rd March 2021

Oil prices have posted substantial gains in recent weeks. And most recently after fully pricing in the impacts of U.S. economic stimulus. That, combined with more positive vaccine news with the approval of the one-shot Johnson & Johnson vaccine.

However, there are some caveats and potential pitfalls for crude prices.

OPEC+ could add more supply this week bringing prices down as refinery maintenance season is with us. Chinese demand for crude seems to have lost its impetus.

Other Market Factors

Today, Brent held above $62 per barrel after falls earlier on, despite some headwinds from a slight strengthening . WTI is once again pushing to get over the $60 barrier.

OPEC still expects oil demand to rise by 5.8 million barrels per day (bpd) this year, as lock downs gradually ease..

UK Market Trends

Milder weather has started to see UK heating oil prices fall gradually. Surprisingly, all the low price benefits of the last 6 months have since evaporated away. Prices are now on a par with this time last year.

Predicting prices for the next 30 days is difficult. But, we see them moving gradually down then stabilising ready for the summer months. Weather conditions could dramatically change our thinking.

Spring heating oil prices are  falling.

Next week should see a more stable return to normal temperatures for this time of year. Though we do expect crude oil prices to waver. We expect to see heating oil prices level off and slowly fall as we approach Spring.

Most distributors are quoting between 39pl to 42ppl. Brokers are much higher and in the range of 40ppl to 43ppl.

UK Regional Analysis

UK heating oil prices have decreased by 1.83% this week. Over the last 7 days there has been an decrease in the average UK oil distributor heating oil prices of 0.78ppl.

Spring heating oil prices are  falling.

At the moment distributor heating oil prices are trending down.

England – average prices down by 1.01ppl to 43.50ppl.
Wales – average prices fell by 0.55ppl to 44.98ppl.
Scotland – average prices down by 1.46ppl to 45.65ppl.
Northern Ireland – average prices fell by 0.27ppl to 37.06ppl.

Spring heating oil prices are falling. Milder weather conditions in all our regions have seen prices fall. 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

During the last 7 days, UK heating oil prices have gradually decreased by 1.83% this week. This amounts to an average rise of just over 0.78ppl after adjustments and vat.

Generally speaking we feel that UK heating oil prices are now falling in line with seasonal requirements. Crude oil prices are moving up and down over the last week by relatively small amounts.

Spring heating oil prices are  falling.

As of today, the UK heating Oil price of 41.92ppl is 0.01ppl lower than this day a year ago. Not only that, 4 years ago the price was 57.67ppl, 15.75ppl dearer.

Distributor vs Broker Analysis

Average prices for distributors fell 0.78ppl on the week. Similarly, average broker prices also fell by 1.00ppl.

Spring heating oil prices are falling. To put it briefly, the difference between average distributor heating oil prices versus average online heating oil broker prices today is 2.50ppl inc vat.

This is the one main reason not using a heating oil broker. On these numbers you would have paid an additional £25.00 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 down to 44.42ppl 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 8.05ppl difference separating the higher and lower priced brokers in our random postcode check.

We are not sure why there is such a big 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

Spring heating oil prices are falling. 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.

Spring heating oil prices

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

Spring heating oil prices are falling as the season is just 2 weeks away. We are encouraging all customers to get multiple heating oil quotes & order on the best price possible. A combination of dropping temperatures, and lockdown easements should see lower prices as we become more mobile.

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