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What Factors go in to Heating Oil Prices

- 8:49 am - January 23rd, 2020

We all know that heating oil prices are difficult to predict! As a heating oil customer, it might help to know what factors go in to heating oil prices, so you can better time your heating oil purchases based on what’s happening in the world!

Here are a few factors that affect oil prices:

Supply & Demand

If there is more oil than there is a demand for it – also known as a surplus – the cost of oil will drop. More demand and a shorter supply of oil will lead to a price increase. That’s the law of supply & demand!

Natural Disasters

Oil price increases can also be linked to natural disasters, such as hurricanes and floods, both of which often result in a spike in oil prices.

Production Costs

Depending where the oil is coming from, the cost can vary. Once the supply of cheaper oil is exhausted, the price could rise as the only remaining oil will cost more to extract.

No matter what’s going on in the world, however, you can count on HEAT USA’s participating heating oil suppliers to have high-quality, low-priced heating oil on hand! Get your discount heating oil today when you become a HEAT USA member!