What Influences Heating Oil Prices?

Market Basics

This has been a challenging time for a lot of American families. We’ve seen record-breaking inflation. Ukraine is still under attack, and the ramifications of that war are being felt around the world. For over a year there has been volatility in the heating oil market. And when the price of oil goes up, we all feel it. It’s challenging for our customers, and it’s challenging for us as well. However, no matter what is happening in the market, Valley Oil remains committed to offering the best prices on home heating oil in the Hudson Valley. So we work hard to provide our customers with options they can afford. Because being comfortable in your home this winter shouldn’t overburden your budget.

Understanding the Heating Oil Market

Heating oil is like most commodities in that there are a number of factors that play a role in what it costs the consumer. It can be helpful to understand the reasons behind the price fluctuations that are affecting your monthly bills. What influences heating oil prices? Here are some of the forces at play:

• The price of crude oil affects the price of heating oil. The price of crude oil is actually the single largest factor in how much heating oil costs. In fact, the price of crude oil accounts for up to 75% of the overall cost of heating oil. And because crude oil is an internationally traded commodity, it’s at the mercy of a number of variables and global market forces that are constantly in flux.
• Supply and demand affect the price of heating oil. This is a basic principle of economics. As someone who lives in the Hudson Valley, you know firsthand how variable the weather can be. This year we’ve already seen summerish days followed by blistering weeks. Because you live in a part of the country that experiences the extremes of all four seasons (sometimes all in one month), the price you pay for heating oil changes as the weather affects supply and demand. The longer or harsher the winter, the higher the heating oil prices tend to rise because demand is high, and supplies aren’t infinite. A shorter or milder winter usually means lower demand and consequently lower heating oil prices. Additionally, if the cost for alternative fuels changes, there’s usually a corresponding change in the demand for heating oil.
• Where you live affects the price of heating oil. Living near a shipping port is advantageous because your fuel provider doesn’t have additional transportation costs. These usually get passed on to the consumer. And if you’re fortunate enough to live in an area that’s supplied by a healthy number of heating oil companies, you can shop around for the best possible price. Since suppliers know that you have a choice, they’ll keep prices as low as possible to attract and keep you as a customer. When suppliers have to compete for your business, you benefit. And when you’re a Valley Oil customer, you benefit even more, because we’re committed to offering our customers the best prices in the region.

Choose Valley Oil

Valley Oil delivers heating oil to the residents of New York’s Hudson Valley, Dutchess County, Ulster County, and the surrounding areas. We offer our customers quality, affordability, and dependability. Even in tough weather conditions, we’ll get you 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 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.