Unless you’re a millionaire, you probably keep a close eye on your finances. This has been a tough financial year for a lot of Americans, and so value matters even more. Whether it’s the gas you put in your car or the milk you put in your fridge, you feel it when there’s a price increase. As with most things you buy, the price of heating oil isn’t always constant. It fluctuates. Here are some of the reasons why:
The price of heating oil is connected to the price of crude oil. In fact, the price of crude oil accounts for as much as 75% of the overall cost of heating oil. The price of crude oil is subject to a number of different variables. Crude oil is an internationally traded commodity, and so it’s at the mercy of global market forces that are constantly in flux.
The price of heating oil is affected by supply and demand. Roughly 90% of the heating oil used in the America is used in the Northeast region. Living in the Hudson Valley, you know firsthand how much the weather can change from one day or week to the next. Living in a region that experiences the extremes of all four seasons, you will see your heating oil prices change accordingly as the weather affects demand. A harsh winter usually translates into higher heating oil prices because demand is high, and supplies are finite. A mild winter usually means lower demand and leads to lower heating oil prices. Additionally, when the cost for alternative fuels changes, there is often a corresponding change in the demand for heating oil that can also affect the supply/demand ratio.
The price of heating oil depends on where you live. If you live in a region supplied by a lot of heating oil companies, that allows for competition, and that tends to benefit you as the customer by keeping prices as low as possible in your area. Because you have a choice of where to get your heating oil, suppliers have to compete for your business, and the best way to do that is with great value and service. Living near a shipping port is also beneficial because your provider doesn’t have additional transportation costs to pass on to you as a consumer.
Choose Valley Oil!
Valley Oil is here to make sure you get the best deal every time you place an order. We want you to pay less and smile more. We have been delivering heating oil to residents of Dutchess and Ulster counties for over twenty years. With Valley Oil, you get quality, affordability, and dependability. Click here to see if we service your neighborhood of the Hudson Valley.
Valley Oil provides quality discount heating oil, and we make a promise to deliver that you can count on. Contact us today to learn more about our money-saving budget plans and price protection options.