Oil prices rise fast

Oil prices rise fast. So Order your heating oil early this Christmas

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.

Market Trends

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

Order your heating oil early this Christmas

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.

Regional heating oil prices order your fuel early this Christmas

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.

Oil prices rise fast so order early for Christmas

Distributor Analysis

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.

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 62.00ppl 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 6.04ppl difference separating DirectOil (Watson Fuels)l and Home Fuels Direct brokers in our random postcode check. Boilerjuice has been either the first or the second most expensive this week.

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 up to 10 days to the same randomly picked postcode.

Avoid Brokers

Late Autumn heating oil prices are rising in line with seasonal and crude prices. 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.

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.

Oil prices rise fast so order for Christmas delivery

Summary

Heating oil prices continue to rise fast as we fast approach the festive season. Our main concerns are demand outstripping delivery availability.

There is no doubt in our minds that every distributor will make great efforts to see that heating oil orders are fulfilled.

Consumers need to do their bit by ordering early and easing logistical issues otherwise there will be some unhappy and disappointed consumers

Heating oil prices have clearly risen beyond expectation and are definitely following 2018 and 2019 price patterns. However, we do feel you should keep an eye on crude oil prices. Experts say they could rise further in the next few months as the world returns to some normality.

We encourage all customers to regularly check their tanks. Then get multiple heating oil quotes & order on the best price possible.

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