Projected Heating Oil Prices For The 2017-2018 Winter
Consumers can expect heating oil prices to remain relatively stable over the upcoming 2017-2018 winter, even though some forecasters are predicting volatility in the market. Overall, most analysts believe that the market will not see a return to the days of $90 to $100 per barrel oil prices through the end of the current decade. However, in order to save money, Easton PA homeowners should still find the best heating oil prices. Additionally, they should always seek a fuel oil delivery company that delivers high quality fuel. R.F. Ohl is here to help by offering premium heating oil delivery at affordable prices.
By knowing what fuel oil prices to expect this winter…
you will be able to budget accordingly. This will give you an idea of what you should set aside for your home heating costs. Many homeowners who are blindsided by high heating costs generally lower their thermostat and comfort levels in order to compensate. By knowing ahead of time, you can stay nice and comfortable by planning ahead. In this article, we will discuss what the projected heating oil prices are.
Worldwide Oil Prices
Most current estimates call for the current worldwide oil price, commonly called Brent, to hover around $59 to $60, with United States oil prices averaging a few dollars lower at about $52 to $55 per barrel. The reason that prices are remaining low is the glut of oil that exists, particularly in the United States. Some of the glut is due, in part, to the “winter that never was” in 2016-2017, which saw uncommonly warm temperatures for much of the colder portions of the country. Crude oil inventories recently hit a record 528 million barrels, meaning there will be no shortage of home heating oil this winter. Thus, homes heated by oil in those areas will have the added advantage of already having a supply on hand, while not experiencing much in the way of price hikes for their heating oil.
U.S. Shale Production
American shale production is also expected…
to continue growing through the end of 2017, contributing to the high supply of domestic oil. Even with cuts that OPEC has made in worldwide production and the vis-a-vis that continues to occur between OPEC and the American market, most major banks have kept their forecasts on the low side. The reason for this is that a brand new supply of OPEC oil is projected to hit the market as soon as production cuts expire in 2018. Thus, the tail end of winter could see a potential drop in the cost of heating oil as a renewed glut hits the American market.
Recent price projections from major sources forecast the barrel price as follows: Goldman Sachs, $55.39 and BP, $55 to $60. However, JP Morgan made the most daring prediction of all by saying that crude oil prices could fall to $42 per barrel. While some forecasts call for a slight rise in prices, the trend is not so much toward the higher end of the spectrum as that there are fewer forecasters predicting costs at the low end. Prices have steadied from the lows of early 2016, but for the most part, consumers should not expect significant increases for another several years.
What Does It Mean For Consumers?
Current home heating oil and gasoline prices are…
approximately in balance and are not high enough to cause inordinate pain to the average homeowner who uses oil to heat a residence. Prices remain half of what they were in 2014. However, any number of factors could produce volatility in the market and cause prices to rise. OPEC could once again slash production or further extend the current cuts. Political upheaval on Venezuela could affect the market as well as possible sanctions on Iran, which has become a major oil producer. However, U.S. is not dependent on imports for supply. In fact, the U.S. has 727 million barrels in the Strategic Petroleum Reserve. Also, it is estimated that they have approximately 2 million barrels in the Northeast Heating Oil Reserve. In other words, remain comfortable that heating oil supplies will not run out.
Heating Oil Prices Easton PA
While finding the best heating oil prices, it is important to find a fuel oil dealer who delivers only high quality heating oil. The quality of oil that you use affects your tank and heating system. For the best and most affordable heating oil, be sure to contact R.F. Ohl. Our services are friendly, trusted, and professional.
We service Bath PA 18014, Bethlehem PA 18015, Durham PA 18039, Easton PA 18040, Hellertown PA 18055, Kintnersville PA 18930, Martins Creek PA 18063, Nazareth PA 18064, Riegelsville PA 18077, Springtown PA 18081, Stockertown PA 18083, Tatamy PA 18085, and surrounding areas.