Monday 8th November 2021
Oil prices rise fast. Heating oil prices continue to rise fast as we fast approach the festive season. Our main concerns are the many consumers who panic bought heating oil during the petrol crisis. This will have a knock on effect as their heating oil tank levels fall prior to Christmas.
We are of the opinion that despite there not being a heating oil shortage, demand will be heavier than the normal Christmas rush and overwhelm delivery slots.
Consumers should be considering purchasing and fill their tanks now and not leave it till later when prices will be higher and de;ivery slots in short supply.
The UK weather is cooling fast. However, with crude oil, gas & electricity prices rising rapidly, a nationwide driver shortage, ongoing Covid issues, higher heating oil prices will prevail the last week in November and well into the New Year.
However, we still recommend heating oil users to check their tank levels regularly as heating oil prices rise. If you have less than 25% of oil in your tank look at getting multiple oil quotes from us at bit.ly/3qSvQ3e now.
This month’s OPEC+ meeting failed to provide any surprise for the oil markets, with the oil group agreeing to keep the 400,000 b/d monthly increments for December 2021 despite oil importers calling for more barrels in the market. This will have the effect of pushing oil prices higher as demand increases and supply remains thwarted.
Today, Brent is holding at over $83 after falls earlier last week. WTI is pushing over the $81 barrier as the oil price resurgeance gets underway and heads to $90 before Christmas.
The global push towards energy transition could result in a tougher 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
Predicting prices for the next 30 days is difficult. But, in the short term we see them moving down to 57.50ppl in order to stimulate early Christmas heating oil sales before they rise.
UK heating oil distributor prices have been floating between 58ppl – 62ppl with the emphasis on the lower figure. Prices are now over 105% higher than this time last year. There is every indication they will go much higher as crude prices move up.
UK Regional Analysis
UK heating oil prices have decreased by 0.71% this week. Over the last 7 days there has been a decrease in the average UK oil distributor heating oil prices of 0.42ppl.
Late Autumn UK Heating Oil prices are down 0.42ppl to an average of 58.68ppl. They may move down a little more this week but, one thing for sure is they will rise later in the month.
England – average prices down by 0.33ppl to 62.45ppl.
Wales – average prices up down by 0.38ppl to 58.53ppl.
Scotland – average prices down by 0.17ppl to 58.80ppl.
Northern Ireland – average prices down by 0.23ppl to 51.82ppl.
As Autumn heating oil prices continue to rise we highly 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 0.71% this week. This amounts to an average rise of just over 0.42ppl after adjustments and vat.
Despite lower prices over the last 7 days we feel UK heating oil prices will be rising in line with seasonal requirements. Crude oil prices are steadily moving up as economies continue to recover and demand increases.
As of today, the average UK heating Oil price of 58.68ppl is 30.05ppl higher than this day a year ago. Not only that in, 2018 the price was 54.85ppl, and 2019, 49.02ppl. It is clear to us that we are on the same track as 2018 pricing.
Distributor vs Broker Analysis
Average prices for distributors fell by 0.42ppl on the week. Similarly, average broker prices rose by 0.12ppl.
To put it briefly, the difference between average distributor heating oil prices versus average online heating oil broker prices today is 1.32ppl inc vat.
Savings fluctuate and depend on your postcode and any other charges made by brokers.