The temperatures are slowly dropping and every morning it becomes obvious that winter is right around the corner. For most, it became obvious when they turned their heating systems on a few weeks ago. If you went ahead and refilled your home heating oil tank, then you may have even been pleasantly surprised by the bill that you received afterwards.
The drop in prices for home heating oil is all over the news and consumers are wondering why heating oil prices have dropped to an all time low. In the following article by CBS Boston, they discuss the prices of crude oil and how this affects home heating costs:
Home Heating Oil Prices Could Be Lowest In Decade, Analyst Says
Staying warm is expected to cost a lot less this winter for home heating oil customers.
Energy analyst Tom Kloza tells WBZ NewsRadio 1030 that because of a historic drop in the price of crude oil over the past year, this will be the cheapest winter for heating oil since 2004.
“Heating oil is going to be a bargain this year under any circumstances,” Kloza said.
To read the full CBS Boston article, click here.
According to this article, you will be paying cheaper prices for your home heating costs especially if your home is heated with oil. So, if you recently refilled your home heating oil tank, then the inexpensive bill that you received at that time will not be the only one.
Many consumers are wondering why heating oil is so inexpensive in comparison to previous years. In the following article titled, “Solar isn’t the only thing that’s getting cheaper. So is fracking.“, by Grist, they discuss one of the principle reasons behind the price drop:
Solar isn’t the only thing that’s getting cheaper. So is fracking.
Yeah, well, not so fast, says Michael Liebreich and Charles Blanchard, over at Bloomberg New Energy Finance. You want to know what else has fallen dramatically in cost over the last few years, besides solar? Drilling for oil and gas, that’s what.
The surprising fact is that in the U.S., oil and gas unit costs have come down about as rapidly as solar power costs over the past five years … It is not just that costs are going down – output is going up. The number of operating rigs in the US is down more than 40 percent from the peak, but production per rig has increased ninefold since 2010.
This article talks how the production of heating oil has become more effective and has increased supplies. This, in turn, is one of the main reasons that heating oil’s prices have dropped significantly. This means that your home heating costs will reflect this and you will be paying a lower prices for your home heating costs this winter.
As we all might well be aware of, heating oil prices tend fluctuate. Many homeowners who are enjoying the drop in home heating oil prices are curious to find out how long they will be able to enjoy these prices for. In the following article by IOL News, they answer that question in detail:
How long will oil stay cheap?
The question is worth asking because there is a tacit assumption that the halving of the oil price at the end of last year is not sustainable and that prices will gradually recover, perhaps to around $80 a barrel, though this may take several years.
That at least is the Opec position, but there is no consensus on this, for some forecasters have argued that prices will stay low for longer. Goldman Sachs is among the bears, predicting that prices will remain low for 15 years, while Barclays’ mid-range estimate is $85 a barrel by 2020, with a top range at $100. The truth is, of course, that no one can know, just as hardly anyone spotted the collapse of the price last year ahead of the event.
To see the full article, click here.
This article claims that heating oil prices will not be going up anytime soon. Consumers who use heating oil to heat their homes will be able to pay these lowered prices for home heating costs throughout the cold season and for many winters to come. This is usually not the case because typically, when the demand for heating oil is higher, then consumers typically see a spike in prices.
Better Home Heat Council concentrates on educating consumers about oil heat, especially on topics involving the economical and efficient use of oil heat. We also help consumers with their energy efficiency issues in their homes and find effective solutions to make their homes more energy efficient. We support local oil companies of Lehigh Valley that provide a range of services and products. Click here to search for a home heating oil supplier in your area. Many of our oil dealers provide energy consultations for their customers.