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What Influences Heating Oil Prices?

Understanding the Ups and Downs

heating oil costs new jersey While your New Jersey heating oil company cannot control what happens in the global energy markets, it’s helpful to have some understanding about why heating oil prices rise and fall on a steady basis.

It begins with crude oil prices, which is usually the most important factor in the pricing of your residential heating oil. Like gasoline and jet fuel, heating oil is just one of the many products refined from crude oil. Crude oil is a globally traded commodity which means that it is subject to many forces that drive its value up or down.

Overall Supply and Demand

Over the last several years, 5% of U.S. refinery capacity, along with 6% percent of European refinery capacity, has been lost. While the pandemic, which drove fuel usage down significantly, played a role in this, there were other factors. Some older refineries were shut down because they were inefficient, and their profits weren’t large enough for Wall Street investors. Other refineries were closed so that their owners could convert them to produce biofuels*.

Operating Costs

U.S. heating-oil prices are typically driven by the use of oil in homes in the Northeast, which consume about 90% of the heating oil used in the country. In a brutally cold winter, prices often rise because of heavy seasonal demand. In addition, labor costs, transportation, and storage expenses contribute to the price of heating oil just as they do for other businesses and industries. When gasoline prices go up, heating oil suppliers must pay more both to get heating oil supplies delivered to them, and to operate the trucks that deliver fuel to residential heating oil tanks.

View a long-term history of heating-oil prices in New Jersey.

Reliable Heating Oil Service in New Jersey

Even during difficult times, full-service heating oil companies have secure access to a secure supply of fuel and well-maintained trucks to deliver it. Heating fuel suppliers also have a staff large enough – or expert partnerships with service companies – to provide excellent customer service and technical expertise.

Your local heating oil company takes pride in their responsive service and they truly care about your comfort and safety. That’s why you can always expect a fast and courteous response whenever a situation arises where you need help in a hurry.

Responsiveness and dependability are among the most important attributes of full-service New Jersey heating oil company

But many New Jerseyans don’t realize just how much more their company can offer, especially when it comes to improving energy efficiency.

Many heating oil companies have expertise in all kinds of heating systems and are familiar with the best ways to maximize home energy efficiency. Because of their vast knowledge, your local heating oil company can serve as your go-to resource. Think of them as your energy savings partner.

They can also give you peace of mind by providing automatic heating oil delivery. Your heating oil company can track your fuel use and make a delivery when you’re getting low.

There is no need to schedule and wait for deliveries, and you’ll avoid the expense and hassle of having your heating oil system tested and primed for restart—something that is required after a fuel run-out.

Learn more by reaching out to a full-service heating oil company in New Jersey.

*Source: NY Times, 11-10-22