Are home heating oil prices expected to rise?

There have been a lot of questions lately about the price of oil and how it will be impacted over the coming months. Many home owners who are managing household budgets are wondering, are home heating oil prices expected to rise? There are lots of factors that influence the cost of oil, so here’s our take on what’s happening to the prices and what you can do to make buying home heating oil more affordable.

Oversupply

There have been some news reports recently that a global oversupply issue is driving down the cost of a barrel, which should in turn mean lower oil prices. Having more oil stored than users are consuming means this supply issue is likely to grow and lead to further falls in oil prices.

Brexit

The aftermath of the EU referendum left the stock market in turmoil, with many questioning what would happen next. Since this unprecedented decision was made, the long term impacts have yet to be established, with forecasts and predictions varying widely on either side. It remains to be seen if home heating oil prices are expected to rise as a result of this decision.

Petrol

You might have noticed petrol prices rising slightly in the past few weeks. This has been an impact of oil production limits, and of course taxes. The good news is that changes to you are likely to be minimal – a couple of pence of a difference to fill your car. You can read more about these changes here.

Seasonal factors

Summer is here, and for most of us that means less heating oil being used as the milder climate allows us to feel comfortable indoors without it. It might be a good time to top up your tank so that you can avoid the rush when the weather starts to get colder. The price of home heating oil has been fairly static for a while now, and despite the Brexit changes it shouldn’t be affected too drastically in the coming months.

Environmental disasters

Forest fires, earthquakes, tornados and other environmental disasters can also impact on the price of home heating oil, as these can interrupt supply and production. One such recent example of this is the wildfires in Canada in May, which forced the shutdown of several oilsands operations until the situation was brought under control.

Making savings on your home heating oil spend doesn’t have to be a chore. We’ve collated lots of ways to help you save even more, so that you get the best possible value from your home heating oil spend, and limit the potential impact of oil price increases. Check them out on our website, and get in touch with us today for a cheap quote for your home heating oil in Ireland.

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