Best Time To Buy Heating Oil
Like gas for your car, heating oil is a commodity with prices that change throughout the year based on supply and demand. Its demand vastly increases during the cold winter months, meaning that heating oil prices often skyrocket at the end of the year.
best time to buy heating oil
If you're one of the 5.7 million households that use heating oil as your primary heating fuel, you know how frustrating it can be to purchase heating oil in the winter as the price increases. But did you know that you can save money on your heating bill by buying oil before winter begins?
On a hot summer day, the need to buy heating oil might be the last thing on your mind. You may have never even considered buying your home's oil before you need it when it gets cold. But if you're tired of high heating costs taking a chunk out of your wallet every winter, buying your oil ahead of time might be just the thing you need to save you time and money throughout the year.
With so many buying options and prices that fluctuate from year to year, it might seem overwhelming to learn oil trends and potential payment methods. But understanding the science behind your home's heating oil prices doesn't have to be complicated. Learn about the historical patterns of heating oil prices, the current market trends and the available delivery options before you purchase your next heating oil supply.
Unfortunately, no one can predict the future. It's important to understand when looking at heating oil trends of the past that, like the stock market, prices can rise and drop at a moment's notice. Several factors contribute to heating oil costs that you have to account for.
Heating oil is derived from crude oil, which is traded on commodity markets. A change in market conditions sends buyers and sellers into a frenzy, which causes crude oil prices to fluctuate. In turn, domestic heating oil prices fluctuate as well, since the price of crude oil represents 55% of the cost of heating fuel.
Throughout the years, the buying and selling of crude oil have made quite an impact in the pricing of heating fuel. Researching oil's past and future can keep you ahead of the game in determining when to buy your home's oil.
A lot happened in 2008, to say the least. In February, Venezuela cut off oil sales to ExxonMobil, the largest publicly traded oil and gas company in the world. Production at Iraqi oilfields remained at a standstill from wartime damage, and, in March, saboteurs blew up an Iraqi oil pipeline. And global strikes and militant attacks further halted oil production in several countries.
As a result, oil prices soared. July 2008 saw an all-time high of $144.29, breaking the record set in 1980 for highest oil costs. Heating oil also rose, peaking in June at $4.47 a barrel. The history of U.S. oil price spikes shows how essential it is to keep up with world news when deciding on the best time to buy.
As disposable income dropped during 2008's Great Recession, so did the demand for oil. Prices fell significantly, and heating oil averaged $1.51 in February 2009. Recessions tend to create this drop in oil prices, as most people can't afford to buy any significant amount.
As you work to understand historical trends, pay particular attention to the current economy and world news. Global conflicts concerning oil-producing nations or increased risk of recession will heighten oil rates, while times of recession and the economy's accompanying regrowth will create a drop in prices.
These historical trends explain U.S. average prices. But national data fails to account for the nuances in different regions of America. Each part of the U.S. has vastly different heating needs, and a state's demands for heating fuel dictates its average cost. Prices can drop in different regions at different times, making it hard to know precisely when the best time to buy heating oil actually is. Studying regional trends is just as essential in determining the best time to buy.
A vast majority of heating oil is bought in the Northeast. Heating oil provides heat to about 20% of households in the Northeast region, accounting for 84% of all residential heating oil sales in the U.S. Particularly, the top five heating oil consuming states are New York, Pennsylvania, Massachusetts, Connecticut and Maine. However, homeowners in other states in the New England, Central Atlantic, Lower Atlantic and Midwest regions also use heating oil to fuel their homes.
For prices that will significantly ease the financial burden of filling your oil tank, top off your tank in the late spring or summer. Prices will typically remain steady or decline during this time. Keeping your tank as full as possible throughout the year ensures that you won't have to worry as much about the peak season spike.
When the tank's full, there's less room for condensation to form. This improves your tank's overall lifespan and saves you from hundreds of dollars of repairs. Overall, buying off-season gives you the best return for your money.
No problem. You can buy heating oil even with a full tank. Many people don't realize they have the option to buy in bulk, but bulk ordering may be just what you need to save time and money through the high-demand peak season. Oil typically lasts for 18 to 24 months when properly stored and treated, so you won't have to worry about your extra fuel going bad when not in use.
By buying your years' worth of oil in advance, you can take full advantage of unusually low or off-season prices. You'll also have a fuel reserve ready for the winter, so you hopefully won't have to worry about running out of oil when you need it most. And since homeowners typically have to refill their tanks two to three times a year, you'll most likely avoid having to top off your tank during the expensive peak season by pre-buying your heating oil in bulk before the season starts.
Heating oil bulk orders are a big investment. Plan your finances carefully to make sure you're ready for the commitment before you purchase. But if your budget allows you to buy excess heating oil and install or care for a storage tank, bulk ordering is one if your best options for saving money overall.
When you buy your heating oil and whether you buy in bulk largely depends on your preferred delivery option. Two main options allow you the flexibility to choose when and how often you receive your heating oil. Each option should be weighed carefully based on your needs and budget.
When you're shopping around for an oil company, the last thing you want is to be locked into a surprise contract with one provider. With one-time delivery, also called on-demand delivery, you buy your home's oil in an "as needed" purchase without a contract, similar to purchasing gas or groceries. The price per gallon will depend on the current going price of oil on the day of your purchase, which can fluctuate based on the day and demand.
For instance, forgetting to order your oil on time could result in waking up to a freezing house. With one-time delivery, you have to monitor your own oil usage, and one mistake could have costly consequences. An oil tank should always be at least one-quarter full, and an empty tank can result in clogged filters and fuel lines. Hiring a professional to clear your fuel lines would cost you time and money that could be put elsewhere.
When the system calculates that you're running low on heating oil, you'll be directly contacted to set up a delivery. With this reminder system, you don't have to worry about checking your tank or running out of oil.
Automatic delivery is the most popular delivery method for most heating oil companies and is excellent for those who are looking for a long-term provider and a hassle-free delivery system. Most companies offer automatic delivery customer discounts, making this the most budget-friendly option.
At Smart Touch Energy, we believe you deserve the best heating oil service at a price you can afford. There's no hidden contracts or fees because we don't need a restrictive contract to make our customers come back.
We offer home heating oil services throughout the Northeast, and we continue to rapidly build our service network. We invite you to view our service areas to find an exact price for your area's oil costs.
If you're interested in seeing the difference Smart Touch Energy can make for your heating costs but aren't ready to commit to one supplier, order an on-demand delivery to see just how much you'll save when you switch to us as your trusted heating oil provider. And if you're ready to make the switch, sign up now for our automatic delivery program. Signing up for this 12-month commitment will automatically give you a $0.03 per gallon discount because we want to reward your loyalty to us.
When you want to save money, we're here for you any time of year. Start your order now to start saving on your heating oil costs. You'll see for yourself why we're the best choice for your home's heating needs. Place an order today or contact us if you have any questions.
In general, oil prices are the lowest in summer due to lower demand. Of course, any time in the off-season is ideal; however, we recommend summer as this has benefits outside of just monetary savings. Refilling your oil tank in the summer and then keeping it full throughout the year will increase the longevity of your oil tank and ensure the likelihood of fewer (hopefully no) repairs.
One of the benefits of home heating oil is that you can buy it on your own schedule. Some house have multiple tanks which last for several months between fills. In this post we explain the best month to buy home heating oil.
Crude oil prices have the most significant impact on heating oil prices. Since home heating oil is a derivative of crude oil, the global supply and demand for crude oil can move heating oil prices up or down. Crude oil is the base fuel that is used in gasoline, diesel, jet fuel, heating oil, and lubricants in all sorts of machinery.
Local heating oil supply and demand also impacts heating oil prices. In densely populated areas on Long Island, there are hundreds of thousands of oil-heated homes, and many heating oil dealers to choose from. As a result, the dealers must be very efficient and offer competitive pricing and fast delivery. The end result: heating oil prices in Long Island tend to be lower than other parts of the Northeast. 041b061a72