If you use heating oil in your home, you may notice that pricing often fluctuates. Many different factors determine final costs, and homeowners can benefit from being aware of the trends and reasons behind them. The guide below answers some of the most commonly asked questions about these changing prices.

A Brief Guide to Oil Pricing

Do global factors affect pricing?

The crude oil market is dynamic and widely influenced by producers and consumers around the world. Global factors like natural disasters, wars, worldwide supply and demand, and political instability in oil-producing countries can cause prices to rise or fall.

What local factors affect prices?

Prices can change for a variety of reasons, but the most important factors include the current season, competition in local markets, and operational costs. 

Homeowners in colder climates like New York consume more oil during the winter, which can increase demand and prices. Additionally, areas saturated by suppliers and dealers may see further reductions. Homeowners in rural areas or towns with few heating oil companies might have to pay more.

What causes sudden price surges?

Even with the many factors that alter oil costs, pricing tends to stay on a fairly steady and predictable trend. However, rapid and unexpected drops in temperature can drive up prices.

Not only will more households suddenly need to restock, but delivery services may also be delayed during inclement weather. Refineries might be unable to keep up with the demand, causing wholesalers to increase prices out of concern for a dwindling supply.

How are prices expected to trend?

Recent shifts in the energy industry indicate that more homeowners are turning to wind and solar power. As the demand for renewable energy sources and hybrid and electric cars increases, the need for oil diminishes.

You might notice oil companies lowering their prices over time to compete with alternative fuel sources. It might be worth continuing to use oil so you can take advantage of the discounts.

If you’re looking for a reliable supplier of heating oil with affordable pricing, get in touch with State Fuel Company in Rochester, NY. For over 80 years, this family-owned and -operated fuel delivery service has provided homeowners with quality oil, kerosene, and diesel fuel. For your convenience, they offer automatic and same-day deliveries to ensure you get your supply when you need it. Call (585) 247-2380 to set up your next delivery. To learn more about their services, visit them online.