What’s the Reason for Low Price of Heating Oil?

March 8, 2021

High Quality Home Heating Oil, Fuel Additive, Red Diesel & Coal Delivery in Drumaness, Newtownards and Killinchy

The price of home heating oil is at an all time low, meaning homes that are off grid can afford to stave off the continued chilly weather. This is of course good news for many, but what’s the reason [or reasons] for the drop in price?

Supply and Demand

Well one of the relevant factors in the plummeting prices has been the Coronavirus, which has caused a lowing in demand for oil. This is due to less transport being needed as many of us were required to stay in our homes. The knock on effects of reduced supply and demand, have of course affected all aspects of oil consumption.

Price War

There was also a problem because of the price war between OPEC and Russia, who could not agree this time on supply reduction. In the past this has been the procedure when oil prices dropped significantly, in an effort to balance supply and demand. The consequential reduction in demand was halted eventually once a production cut was agreed. Although this is good news, the eagerly anticipated cuts have not been enough to counter the reduced demand.

Seasonal Adjustment

During the summer months the price of home heating oil has always dropped, as a result of less need to heat the home. As the weather becomes warmer, there is also a reduction in demand for most other forms of fuel, although their price usually remains the same.

Stock up on Home Heating Oil while Prices are Low

It’s a good idea to stock up on your home heating oil while prices are low, as there is no guarantee how long they will stay at the current level. You can order home heating oil, red diesel etc simply and efficiently online from specialists Strangford Fuels. Based in Downpatrick, County Down, we deliver the highest quality home heating oil, red diesel, coal and fuel additive to a wide range of customers.

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