Crude and Heating Oil Analysis
Sunday 5th January 2020 . Welcome to the New Year and thank you all for your support during 2019.
We enter 2020 with mixed feelings about where heating oil prices will go. Will OPEC+ extend its cuts? Will U.S. shale finally grind to a halt? Is this the “year of the electric vehicle”? Here are 10 stories to watch in 2020.
All of which has been complicated by the events in Iraq. Oil prices soared early on Friday morning, 3rd January, after U.S. forces in Iraq assassinated Iran’s most powerful and visible military leader, Qassem Soleimani.
However, weak demand still dominates, and over supply looms. The oil glut should start to erode over the next 3 months following on from OPEC’s cut in production output in the first quarter of 2020. They have agreed to deepen oil production cuts to 500,000 barrels a day through to March 2020. This brings the total production cut to 1.7 million barrels a day.
Currently Brent price is up $2.35 (3.55%) today and is $68.60. WTI is also up $1.87 (3.06%) and is at $63.05. The weather for the time being remains mild but could change without much warning. Keep an eye on pricing and request multiple quotes often from heatingoilshop.com to keep in touch with price movements. Go to our home page and half way down you’ll see live market trading positions. (Mon-Fri Trading hours)
Wholesale Heating Oil prices are also up $3.73 (1.84%) to $2.0614.
We do expect prices to rise further in the first few weeks in 2020.
Over the last 10 days heating oil prices have been falling steadily but moved up 2 days ago only to retreat again today. The weather, political events, product availability and OPEC’s desire to decrease production in 2020 will be a major influence on prices.
Brexit, which is at the end of the month may impact UK prices. But, the effects are double edged and prices are just as likely to rise or fall. Fuel supply is unlikely to be affected as 90 day stocks are held. Price volatility will be short-lived as markets will stabilise & business return to normal.
Keep an eye on your local price situation by getting multiple quotes from heatingoilshop.com,
#checkyourtank & make sure you do not run out of #HeatingOil and top up where necessary. Save money by getting quotes from a heatingoilshop.com distributor and not incentivised brokers.
Distributor vs Broker Analysis
Today, average prices for distributors rose to 51.85ppl and average broker prices rose to 54.13ppl. We do see heating oil prices rising slightly this week and falling back about Friday. There is a big difference between average distributor
#heatingoil prices versus average online heating oil broker prices of 2.28ppl inc vat. Price differences will fluctuate between broker and distributor and does depend on your postcode and other charges made by brokers.
Our advice is to thoroughly check the broker quote you are given for hidden charges. There are many bargains out there, especially from suppliers. Remember, savings can change in an instant!
Wise up, cost more money. Brokers charge a variety of commissions, surcharges & admin charges or a mixture of all and these affect your final bill. Some brokers are notorious for loading quotes with delivery charges, commission and admin charges. All of which push up the PPL exclusive of VAT price. As you can see using a broker today, can cost you more and it does vary from day-to-day and from broker to broker. Individually some of the brokers can be cheaper than the average distributor price. That’s why it is better to choose multiple
#heatingoilquotes from HEATINGOILSHOP.com where the price quotes are free of commissions, delivery or other surcharges, and more competitive.
Today’s Broker Analysis
Average broker prices are up to 54.98ppl today. You can see from the above graph which brokers are charging the most today. Boilerjuice is highest priced at 60.04ppl, Fuel Tool and Heatringoil follow Boilerjuice is some 10.76ppl higher than its lowest priced competitor.( Always check our Twitter account for updates). Boilerjuice have introduced ad hoc delivery charges on random/certain postcodes. The shorter the period the more you will pay. You will still pay their “fund our website” fee of £3.49 though.
It’s common sense to steer away from brokers especially at this time of year with higher pricing, commission charges and delivery charges and poor delivery guarantees. You would be better off comparing prices from heating oil distributors in your area using heatingoilshop.com. Remember, prices change regularly and are delivery postcode dependant.
UK Regional Analysis
This last week has seen UK prices fall gradually. There has been a net decrease in the average UK oil distributor
#heatingoil prices on the week of 0.37ppl finishing today at 51.85ppl.
#Scotland average prices fell by 0.15ppl to 52.38ppl.
#Wales average prices fell by 0.24ppl to 55.77ppl
#NorthernIreland average prices fell 1.32ppl to 49.24ppl.
There is a likelihood for current price trends to change down as we go further into the New Year. Head on over to heatingoilshop.com and get multiple #heatingoilquotes from suppliers to your area and do it asap.
Heatingoilshop.com prides itself on not charging commissions, delivery charges and general website usage charges.
The average price table is a guide only and does not constitute an offer. As regional, postcode and supplier differences occur, we encourage you to obtain multiple and competitive #heatingoilquotes from heatingoilshop.com to get the latest deals and prices from the suppliers delivering to your area.
Please note, we do not charge suppliers or consumers brokerage commissions nor do we add surcharges like other sites.