Sunday 11th April 2021
Milder – oil prices fall. Despite some pretty cold weather again in early April, heating oil prices are falling. Markedly, crude oil prices have risen and fallen back. Inevitably, it was the colder weather pushed UK heating oil prices higher.
Thankfully, the weather is due to improve with it being milder and agreeable this coming week. Daytime temperatures are forecast to be close to the norm early in the period and there should be a good deal of dry weather. Temperatures perhaps rise above average in the south and east, but in the north and west it remains cooler.
However, and with that in mind it is wise for heating oil users to regularly check their tank levels. We estimate that during the recent cold spells, homes (dependant on size) have used more heating oil this year.
If you have less than 25% of oil in your tank look to getting multiple oil quotes from us bit.ly/3qSvQ3e first then order.
Oil prices sank on Monday as coronavirus cases surged around the world, leading to renewed lockdowns. Oil prices rebounded on Tuesday although the trend is not exactly bullish.
Crude Oil prices are set to post further losses this week, following several days of up-and-down trading. The story is the same of jockeying between market tightness and concerns about demand amid spreading Covid cases.
Other Market Factors
Today, Brent held above $62 per barrel after earlier falls. We feel the price may weaken but not by much. WTI is once again pushing to get over the $60 barrier.
Interestingly, OPEC+ is betting that demand will rise as some countries economies recover slowly from the covid-19 crisis. The loosening of OPEC+ production cuts shows the groups positivity and believes demand will continue to rise!
UK Market Trends
Milder as oil prices fall. Annonyingly, the colder weather returned to most of the UK last week. This resulted in resale prices rising especially in the latter part of this week.
Predicting heating oil prices for the next 30 days is never easy. Nevertheless, we see them gradually moving down again and stabilising ready for the summer months. However, weather conditions, crude prices and Covid-19 status could dramatically change pricing in a blink of an eye.
Looking forward, the next weeks should see a more stable return to normal temperatures for this time of year. We still expect crude oil prices to waver as a reaction to increased Covid-19 cases. In the UK, we expect to see heating oil prices level off and slowly fall.
Most distributors are quoting between 39pl to 42ppl. Brokers are much higher and in the range of 40ppl to 47ppl
UK Regional Analysis
UK heating oil prices have increased by 2.25% this week. Over the last 7 days there has been an increase in the average UK oil distributor heating oil prices of 0.90ppl.
At the moment distributor heating oil prices are trending up, but we believe this will be short lived.
England – average prices up by 1.13ppl to 42.43ppl.
Wales – average prices fell by 0.07ppl to 42.13ppl.
Scotland – average prices down by 0.08ppl to 44.23ppl.
Northern Ireland – average prices rose by 0.50ppl to 35.99ppl.
Spring heating oil prices have been falling, but the recent artic cold blast this week pushed prices up. All things considered the next two weeks will be milder but wet. This will see prices fall.
Milder as oil 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.
During the last 7 days, UK heating oil prices have gradually increased by 2.25% this week. This amounts to an average rise of just over 0.90ppl after adjustments and vat. However, the sudden worsening weather impacted UK heating oil pricestowards and during the weekend.
Generally speaking we feel that UK heating oil prices are now falling in line with seasonal requirements.
As of today, the UK heating Oil price of 40.82ppl is 0.90ppl higher on the week but on a par with 2017 prices.
Distributor vs Broker Analysis
Average prices for distributors rose 0.90ppl on the week. Another key point is average broker prices also fell by 1.06ppl but suddenly jumped 2.71ppl on Sunday 11th April.