As a user of Kerosene heating oil to heat your home you will be aware of the price fluctuations, often having to pay a different price for each order you place. It can therefore be difficult to know when the best time is to place an order to get the best value or cheapest price, particularly in the lead up to the colder winter months when you’ll use the most oil. On average, between October and March a household will use 2/3rds of its yearly heating oil consumption.
As there are many complex factors which influence the price you pay for your heating oil, this makes it difficult to predict when the best time to purchase oil is. By understanding some of the main factors affecting the price of winter heating oil you should be able to make an informed decision about when the best time to order is for you. However, we always recommend you start to think about your winter heating oil requirements during the autumn. This means you’ll be prepared should the colder weather start earlier than anticipated, plus you would beat the rush for deliveries leading up to the Christmas and New Year period.
What factors influence the price of winter heating oil:
During the winter months when the weather is at its coldest, it would be anticipated that a household would use more heating oil to keep warm than during the warmer summer months. This means that the demand for heating oil is likely to increase significantly during the seasonal weather. An increase in demand is likely to result in a rise in price as more Kerosene will need be needed to cope with the higher demand.
Weather changes will also heavily influence the price of heating oil. A particularly cold winter or an unexpected spell of bad weather, where households are using more oil for heat, could result in a sharp price increase. Likewise a mild winter could see households turning down the thermostat and therefore using less oil, which might result in a fall in oil prices as demand is not as high as anticipated, leaving manufacturers with surplus oil. You are likely to find that because demand for heating oil is lower in the warmer summer months the price you’ll pay will also be cheaper.
Keeping an eye on the upcoming weather could provide an indication as to what the price of heating oil is likely to do. The earlier you order your winter oil the more likely you are to pay a cheaper price as demand is anticipated to be at its highest between October to December.
It is advisable to be aware of global factors which may also have a bearing on the price you will pay for your winter heating oil. Crude oil which forms the basis of Kerosene heating oil is bought and traded in US Dollars. The Pound Sterling to US Dollar exchange rate will also have an impact on the price you pay for heating oil. As will the availability of oil from producers. Oil producers around the world will try and anticipate the quantity of oil that will be required. If demand for heating oil is higher or lower than they have anticipated it could affect the price you pay. Other issues such as global political, weather and economical events may also play a role in influencing the price of your heating oil this winter.
When is the best time to buy heating oil to get the best price this winter?
Monitoring these influencing factors may help you to predict whether the market prices are likely to rise or fall, and may help you to decide when would be the best time for you to fill your heating oil storage tank ahead of the colder weather starting. However, our advice would always be to take a fill of your tank as early as possible so long as you can afford to do so.
Monitor your heating oil levels to avoid running dry over winter:
Regularly monitor your heating oil levels as this will help you to identify when you need to place an order and will help reduce your chances of unexpectedly running dry during the cold weather when you’ll be most reliant on your household heating. If you require a top-up of your heating oil never hold out for the market to fall or for a better price. This could leave you at risk of running dry of oil, which may result in an emergency call out from an OFTEC engineer to get your boiler started again.
Be aware that your winter heating oil consumption may change during the festive period. Additional house guests or a sudden change in weather may mean that you are using more heating oil than you have anticipated
Read more about when is the best time to buy winter heating oil or speak to your delivery depot today.
