Home Heating Oil Prices – Buy Now or Wait?
Home Heating Oil Prices
As most people know, the price of home heating oil has plunged.
Not so long ago we were paying €850 for 1,000 litres of it.
A lot of people who had switched to oil from coal when it was cheaper were considering changing back.
The current lowest local price for home heating oil is €549 for 1,000 litres and €287 for 500 litres.
However, it would be good to shop around as some suppliers are charging more for it such as €564 and €569.
So should You Buy Now?
With winter coming, and people likely to use more heating oil, is it time to cash in and get a load of heating oil now before the price goes up again?
Or should you wait?
After all, oil has fallen from more than $120 a barrel to less than €45 a barrel now.
Surely that won’t last.
Heating Oil Price Going Lower
One can never say for definite.
However, the indications are that it is likely to go even lower still.
There is a glut of it at the moment.
There is enough oil in storage to keep everyone till Christmas without another drop of oil being pumped.
Turning the Taps On
Saud Arabia has turned on the taps, supposedly to crush the US companies who are extracting oil from shale, out of the market.
The Saudis reckon that the US companies won’t be able to extract it commercially at current prices.
They are deliberately creating a glut to push prices down.
There’s no indication of them stopping any time soon.
Wait for Further Falls in Heating Oil Prices
At some point in the future, OPEC will get together to make prices go higher.
However, that is not likely to be for some time yet.
So, you might as well wait till you are out of heating oil, or nearly out of it before purchasing more.
But don’t come around my door if some international incident sends the price of oil soaring.