Everywhere you look, it seems like prices are on the rise. Inflation is breaking records. And world events have left many markets volatile. From supply chain delays and staffing shortages to the price of gas for your car, these are challenging times for us all. Now world events are causing volatility in the heating oil market. And when the price of oil rises sharply, it hurts us all—including those of us who sell it.
Global crude oil prices soared to over $100 per barrel for the first time in eight years after Russia invaded Ukraine in February. As you probably know all too well by now, the price of crude oil is linked to the price you pay for gasoline, heating oil, and many other products here in the Hudson Valley.
Even before the war in Ukraine accelerated price increases to an even greater degree, consumer spending—combined with persistent supply shortages—had already sent inflation rates in our country to their highest level in 40 years.
You’ll hear some pundits and politicians say, “we just have to drill for more oil at home.” Honestly, that’s an over-simplified and misinformed solution to the production shortfall.
Investors know that a zero-carbon emissions world is not too far off in our future. Big money is holding back on fossil fuel investments as legislators try to move the country toward more renewable energy. Investors are looking to sink their money into long-term, profitable opportunities in the burgeoning green energy field.
Another factor influencing oil companies is what happened in the spring of 2020 when crude oil prices fell all the way to negative $30 a barrel. Traders had to pay buyers to take oil! Since then, however, prices have been rising steadily. And then they exploded in late February after the Russian invasion of Ukraine.
But, proving just how much and how quickly things can change, crude oil prices dropped under $100 per barrel again in mid-March. This was caused by a variety of factors, including the unexpected Covid-19 lockdowns in China, small signs of a possible diplomatic solution to the Ukraine conflict, and the biggest drop in four years of “bullish bets” on the market by hedgers.
To say that we are currently experiencing an extremely volatile energy market would be an understatement.
Nothing is certain, but here at Valley Oil, we remain dedicated to offering our customers quality home heating oil at the best prices you can find. Our number one concern is your comfort, so there is virtually nothing that will stop us from delivering the fuel you need when you need it. And if you’d like more predictability when it comes to your heating oil bills, sign up for one of our budget plans.
Valley Oil delivers heating oil to the residents of Dutchess and Ulster counties. We offer our customers quality, affordability, and dependability.
Valley Oil is a reliable provider of quality discount heating oil. Contact us today to order oil, register for one of our budget plans, or sign up for automatic delivery.