The Truth About The Current State of Heating Oil Prices

by R.F. Ohl, Heating Oil Delivery Experts in Northeastern Pennsylvania

In the past decades, homeowners who depend on oil to heat their homes were always concerned about the rising oil prices. Natural gas and other heating sources and their proponents were constantly bombarding those loyal to heating oil to finally switch and convert. But the thing is they will never be able to deny the fact that oil is the most abundant of all fuel sources for heating. And while there were darker days of heating oil prices, it seems like those days are all over. Heating oil prices have plunged to their lowest levels in a span of six years. So those who have stayed loyal and stuck to it are now going to see hundreds of dollars in annual savings on their heating expenses. Additionally, homeowners that have had their oil furnace repair and annual maintenance performed, their heating systems a re operating at high efficiency levels, saving them money. If today’s current price trend will hold, analysts and experts agree that the usual household that uses about eight hundred gallons of oil every winter has the opportunity to save almost $1000.

oil prices are downFor some economists, there is a belief that the significant drops in heating oil prices will actually help boost the economy of a particular state. This is of course with the assumption that prices will hold through the entire winter. And because oil heat is the only option for many households, it means that if the prices remain low, savings will be felt, and we mean substantial savings, not just pocket change.

Why Oil Prices Are Going Down

The reason why petroleum prices are falling is because of the sudden boosts in U.S. oil production as well as the decreasing global demand, all of which may be attributed to the slowing economic growth in many industrialized countries. Average heating oil prices this month are down compared to the price exactly a year ago. In fact, when we dig deeper, we’ll see that today’s prices are the lowest for the summer end’s price since 2009.

The continuous decline in heating oil prices is quite beneficial to low income families. This is because it’ll take the pressure off their very tight budgets. It can offset rising costs of living including rents and electric bills.

And although it might sound surprising, the decline in prices is actually music to the ears of heating oil suppliers and delivery contractors. The reason is that with a steady decline, there will no longer be pressure coming from natural gas proponents trying to convince those homeowners who use heating oil to switch. When prices are down, why in the world would anyone switch to gas when it is more expensive?

Home Heating Oil and Gas

To be fair to natural gas users, gas prices actually have lowered, too. And the good news for both natural gas and heating oil consumers, the prices seem to be in a very good state as the home heating season gets closer. Gas prices at the pump have dipped below the $2 per gallon mark in many regions, and while you’re wondering why we’re talking about gas in the first place, that’s because the trend seems to be carrying over to heating oil. When prices of crude oil go down, so does the price of heating oil. The projection is that heating oil consumers may pay as much as half per gallon for the oil they once paid a year ago. Those potential savings can then be used for other things a homeowner needs to spend on.

Because heating oil prices are at an all-time low, experts are suggesting that consumers buy right now. It still can go up, as history will tell us, so it makes perfect sense to purchase it right now than having to settle for the higher price during the peak season.