You rely on residential heating oil to fuel your furnace and keep your home warm all winter long. However, due to the fluctuating prices of oil, it can be difficult to budget for expected heating costs. Below is a list of the main factors that affect home heating oil prices so you know how to compare past and current pricing trends.

What Affects Home Heating Oil Prices

1. Weather

Snowstorms and freezing temperatures cause the price of heating oil to rise for multiple reasons. First, more people will be using heating oil at a faster rate, increasing demand and decreasing supply. Poor weather conditions also impact delivery. If companies have to work harder or longer to get fuel to their customers, the prices will rise. 

2. Consumption

If you live in an area where most of the residents use home heating oil to fuel their furnaces, there may be more competing suppliers. As a result, the prices of the oil will drop. However, a limited number of heating oil businesses may cause the existing suppliers to have more control over the market, thus raising the cost of the oil. 

3. Global Supply & Demand

Heating oil is derived from crude oil. There are myriad factors that impact global crude oil supply and prices. Natural disasters or economic hardship may reduce availability and drive up prices. New government policies also affect costs. Environmental concerns have led to stricter federal safety requirements for plants, reducing production and inflating prices, for example. OPEC – an international organization of oil-producing countries – can decide to limit or boost production. Political crises and movements in the derivatives market can also cause price oscillations. 

If you’re seeking a reliable supplier with affordable home heating oil prices, turn to the team at Norwich Discount Oil in Norwich, CT. For over 24 years, this family-owned heating oil company has provided premium home heating oil and kerosene at affordable prices. They’re known for their exceptional customer service and prompt delivery. Call (860) 886-5508 today to speak with a representative and request a free estimate. Visit the website to learn more about their products and services.