Crude and Heating Oil Analysis
Thursday 16th January 2020. Prospects for lower UK Heating Oil prices look good.
Well things have really shaken up oil prices within 2 weeks of the New Year with crude falling despite Opec’s production cuts. Today has seen some slight increases but we expect them to fall back as the API has estimated surprise crude oil inventory build of 1.1 million barrels for the week ending January 10, compared to analyst expectations of a 474K barrel draw in inventory.
Last week saw a large draw in crude oil inventories of nearly 6 million barrels.
But there are still questions to be asked. Will OPEC+ extend its cuts? Will U.S. shale finally grind to a halt? Is this the “year of the electric vehicle”?
Fortunately, events between Iran the US and Europe have subsided following the assassination of Iran’s most powerful and visible military leader, Qassem Soleimani.
Weak demand still dominates, and over supply looms. The oil glut may 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 $0.23 (0.36%) today and is $64.23. WTI is also up $0.14 (0.24%) and is at $57.95. Both main crudes have suffered price drops since the 5th Jan 2020.
The weather for the time being remains mild for the next 3 weeks with the occasional overnight frosts. 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 down $1.78 (0.95%) to $1.8601
Over the last 7 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 UK prices for distributors fell to 49.86 ppl and average broker prices rose to 54.13 ppl. We do see heating oil prices slightly falling further over this week assuming crude oil prices continue to fall. There is a big difference between average distributor
#heatingoil prices versus average online heating oil broker prices of 1.10 ppl inc vat. Price differences will fluctuate between broker and distributor and does depend on your regional 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 down to up to 50.96ppl today. You can see from the above graph which brokers are charging the most today. #TankTopperUK is the highest priced at 55.464ppl and #UKHeatingoil (Certas) follow. Tanktopper is some 8.21ppl higher than its lowest priced competitor. That means a 500 litre load will be £41.05 dearer than if you bought from #Fueltool today. Always check our Twitter account for updates. Boilerjuice’s delivery charges are still in force at 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 , commission charges and delivery charges all; add up to more expensive alternative. 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 average UK prices fall dramatically. There has been a net decrease in the average UK oil distributor
#heatingoil prices on the week of 1.47ppl finishing today at 49.86ppl.
#Scotland average prices fell by 1.30ppl to 51.36ppl.
#Wales average prices fell by 2.05ppl to 50.79ppl
#NorthernIreland average prices fell 0.88ppl to 48.17ppl.
There is a likelihood for current price trends to go down further as we approach February. One weather forecaster has forecast snow on 4 days in February starting the 15th. Just bear that in mind because disruption to deliveries could occur. Head on over to heatingoilshop.com and get multiple #heatingoilquotes from suppliers to your area on a regular basis and keep an eye on the weather too!
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.