What Impacts Heating Oil Costs?

happy familyFor the best heating oil prices in all of northeastern Pennsylvania, contact R.F. Ohl. We offer fast and affordable fuel oil deliveries. You can count on to deliver your fuel in a timely and professional manner. We also offer a full line of HVAC services to help keep your heating and cooling equipment working efficiently. Call us today to schedule an appointment.

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What Determines Heating Oil Costs Lehighton PA?

Like most homeowners, you’re probably used to the idea of heating oil prices changing dramatically across seasons. Ever wondered why this happens? It’s because fuel oil prices are affected by a handful of factors. To help you plan better going forward, why not take a look at these elements?

Crude Oil Costs

crude oil supplyHeating oil is a byproduct of crude oil, which means its cost will generally follow that of the latter. Many forces play a hand in the pricing of crude oil but, for the most part, it’s usually affected by factors that are significant enough to be felt on a global scale. Such include:

  • Current Supply Capacity: From a historical standpoint, OPEC (Organization of Petroleum Exporting Countries) arbitrarily set the quota system. Thanks to a two-fold rise in American shale oil production in 2011-2014, this entity has lost quite a significant share of the control that it previously held. With these two forces competing for dominance, chances are that home heating oil prices could dip lower than they were in the late 2000s.
  • Reserve Stocks: Among the more significant oil producing and consuming nations, it is a standard practice to stockpile reserves of the commodity as a way of hedging against volatility. These reserves help maintain stability in the face of short-term spikes of crude oil.

The Local Market

Like is the case with other commodities, local home heating oil prices tend to differ across regions. The variance in local operating expenses impacts residential heating oil prices, but that’s not all. The state of competitiveness in particular in a particular geographical market also affects the current heating oil prices per gallon.

It’s fair to say that the more the number of dealers in your area, the lower the cost of your heating oil deliveries. This claim is particularly valid if your home can be accessed with relative ease as well. Also, choosing an established company could see you land a more competitive fee, thanks to their lower overhead costs. Those who live in rural areas may pay more for their deliveries. It is a good idea to compare local home heating oil prices and go with a company in your area that is reputable with good prices.

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Seasonal Demand

winterOther factors held constant, the cost of home heating oil will always reflect the weather outside. It’s generally known that the onset of winter triggers a climb in demand and therefore a rise in pricing. Also, you may witness a climb if there’s an event that causes a shortage in supply (such as a storm). Common sense dictates scheduling your delivery during the summer/early fall to avoid paying more for your fuel.

Government Policy

In recent years, rising environmental and health concerns have motivated the formulation of stiffer regulations for the oil industry. It’s worth pointing out that these policies are designed with the consumers’ interests in mind. Even so, the price structure of heating oil is usually affected by such developments.

Strictly speaking, the need for companies to halt production while adapting their processes means regulatory changes tend to drive up prices. The output will, however, depend on seasonal demand — policies that are out in place when demand is low are minimally-impacting. Other than that, companies may be offered more time to react to these changes to maintain stability in the market.

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Get Affordable Fuel Deliveries With R.F. Ohl

R.F. Ohl specializes in home heating oil deliveries throughout northeastern Pennsylvania. We offer high-quality discount fuel oil and all of our deliveries are fast, reliable, and professional.

You can count on us to provide you with the best possible service and the best heating oil prices in PA. Be sure to give us a call or click here to contact us to find the best home heating oil prices today or more about what R.F. Ohl can do for you.

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Some of the areas we service include Ashfield, Jim Thorpe, Lehighton, Parryville, and these zip codes: 18212, 18229, 18235, 18244 as well as all surrounding areas in the Lehigh Valley, Pennsylvania.