Tuesday 8th June 2021
Summer heating oil prices, at the moment are over 50% more than this time last year. Higher crude prices are responsible as covid -19 economy economies start to recover and demand for petroleum products increase.
The UK weather has been much more kinder. However, heating oil prices have failed to fall much as summer progresses.
However, we still recommend heating oil users to check their tank levels regularly. We estimate that during the recent cold spells, homes (dependant on size) have used between 100/200 extra litres of heating oil this year. If you have less than 25% of oil in your tank look at getting multiple oil quotes from us bit.ly/3qSvQ3e
Oil bulls are out in force as OPEC+ succeeds in draining global inventories while successful vaccine programs give hope that the end of the global pandemic may be in sight.
WTI is testing the $70 threshold, and the oil bulls are out in full force this week.
Oil prices were rising on Friday and continued into this week for a second consecutive week of gains after the U.S. signaled that there may not be an imminent announcement of an agreement for the United States and Iran to return to the Iranian nuclear deal.
Environmentalists and activist shareholders intensified pressure on large public oil firms to align their businesses with a net-zero scenario, while some of the international majors acknowledged they have a part to play in the energy transition. But the leaders of the OPEC+ group, Saudi Arabia and Russia, will continue to invest in oil and gas because, they say, the world will still need those resources for decades, despite the growing push against fossil fuels and investment in new supply.
Other Market Factors
Today, Brent held above $71.9 per barrel after falls earlier on, despite some headwinds from a slight strengthening . WTI is once again pushing to get over the $70 barrier.
The global push towards energy transition could result in a supply shortage if there is too little upstream development for new oil supplies. The world risks a severe deficit of oil and gas which will push prices higher. We all know the world consumes oil, but is not ready to invest in the industry.
UK Market Trends
Summer Heating Oil Prices rise as warmer weather arrives. UK heating oil prices surprisingly remain at the $40-$43 level given the season Prices are now over 50% higher than this time last year. We believe they may push higher as crude prices move up.
Predicting prices for the next 30 days is difficult. But, we see them moving gradually up during the summer months.
Most distributors are quoting between 41ppl to 43ppl. Brokers are much higher and in the range of 42.75ppl to 45.50ppl.
UK Regional Analysis
UK heating oil prices have increased by 0.77% this week. Over the last 7 days there has been an increase in the average UK oil distributor heating oil prices of 0.32ppl.
Summer Heating Oil Prices at the moment show distributor heating oil prices poised to move up further.
England – average prices up by 0.52ppl to 42.97ppl.
Wales – average prices up by 0.30ppl to 42.65ppl.
Scotland – average prices up by 0.23ppl to 45.55ppl.
Northern Ireland – average prices up by 0.01ppl to 38.36ppl.
Summer heating oil prices are rising. 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 decreased by 0.77% this week. This amounts to an average rise of just over 0.32ppl after adjustments and vat.
Generally speaking we feel that UK heating oil prices should now be falling in line with seasonal requirements. Crude oil prices are gradually moving up as economies start to recovber and demand increases.
As of today, the UK heating Oil price of 41.81ppl is 14.58ppl higher than this day a year ago. Not only that, 4 years ago the price was 37.88ppl, 3.93ppl dearer.
Distributor vs Broker Analysis
Average prices for distributors rose 0.32ppl on the week. Similarly, average broker prices also rose by 1.52ppl.
To put it briefly, the difference between average distributor heating oil prices versus average online heating oil broker prices today is 2.00ppl inc vat.
This is the one main reason not using a heating oil broker. On these numbers you would have paid an additional £20.00 on a 1000 litre delivery.