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Heating Oil Price Updates


 

February 2022 Heating Oil prices highest in 7 years

Saturday 12th March 2022

A lot has happened in the oil industry over the last 2 weeks.

Russia"s invasion of Ukraine has caused the oil market to become unstable and volatile which has impacted crude and heating oil prices in the UK. This means pricing and availability are majorly affected especially in the broker section of the business as  UK Oil distributors look after their regular customers first.

Fortunately, supply and pricing issues have only affected a handful of distributors so Heatingoilshop continues to operate as normal. We do recommend selecting more companies when making your heating oi quote requests.

The UK weather seems to  still be in an unsettled stage as we approach spring. However, with crude oil, gas & electricity prices rising rapidly, higher heating oil prices will prevail but probably at a lower level than of late.

We still recommend heating oil users to check their tank levels regularly as heating oil prices are still volatile. As we write, prices are lower than 3 days ago. If you have less than 25% of oil in your tank look at getting multiple oil quotes from us at bit.ly/3qSvQ3e now.

Market Trends

Oil prices hit over $125 last week as supply disruption fears caused by sanctions against Russia began to bite.

Oil prices are headed towards their biggest weekly decline since November 2021on Friday (11th). As such supply concerns have been somewhat alleviated.

 Instead of bringing pipelines back on stream US officials have reached out to Venezuela and Iran which has brought some downward pressure to prices.

The Biden administration's intent to secure more oil and opening the potential for Venezuelan heavy barrels to come to the U.S and the United States’ SPR release is set to ease some immediate tightness in the market This is to offset the loss of Russian imports to the US.

The UK and other European countries have also cut off oil and gas supplies from Russia. The only thing is that supply position may get worse before getting better,

There is also an increasing level of confidence that Russian supply to Asian buyers will continue even without LCs, using direct telegraphic transfers, alleviating fears of Asia growing tighter, too. While markets remain undeniably tight, some of the worst-case scenario fears have been alleviated.


UK Market Trends

UK Market TrendsHeating oil price prediction

Predicting prices for the next 30 days is difficult. But, as of the last 3 days (12/03) we have seen heating oil prices fall following Crude Oil prices also falling. The anticipation is for crude prices to be at $87 by December 2022 or earlier

UK heating oil distributor prices have been floating between 116ppl – 152ppl over the last 7 days with highs of 160ppl. The emphasis has been on the higher figures for 4 days. Prices are now  at a 10 year high and 122ppl higher than this time last year. There is every indication they will fall further as crude price falls gain momentum.


UK Regional Analysis

UK heating oil prices have increased by 31.14% this week. Over the last 7 days there has been an increase in the average UK oil distributor heating oil price of 36.08ppl.

 

UK Heating Oil prices are up 36.08ppl to an average of 151.95ppl. They may move up more this week.

England – average prices up by 48.08ppl to 165.00ppl.
Wales – average prices down by 60.61ppl to 186.14ppl.
Scotland – average prices up by 36.36ppl to 139.49ppl.
Northern Ireland – average prices up by 18.41ppl to 137.96ppl.

As heating oil prices continue to rise and the weather very changeable we highly recommend you check your heating oil tank regularly. Also check our daily twitter feed @ukheatingoils. You can request multiple quotes from heatingoilshop.com on a regular basis to avoid any possible imminent price rises.

read your heaating oil tank gauge

Distributor Analysis

During the last 7 days, UK heating oil prices have gradually increased by 31.14% this week. This amounts to an average rise of just over 36.08ppl after adjustments and vat.

We feel UK heating oil prices will fall gradually as crude prices fall and in line with seasonal requirements until warmer weather arrives. Crude oil prices moved up but are heading towards their biggest weekly decline since November 2021 as supply concerns have been somewhat alleviated.

average UK distributor heating oil price last week



Distributor vs Broker Analysis

Average prices for distributors rose by 38.56ppl on the week. Similarly, average broker prices rose by 64.03ppl.

To put it briefly, the difference between average distributor heating oil prices versus average online heating oil broker prices today is 28.65ppl inc vat or £286.50 on a 1000 litre delivery. A very good reason not to use heating oil brokers.

 

Savings fluctuate and depend on your postcode and any other charges made by brokers.

For instance Boilerjuice™ charge an additional £3.49 and is applied to each order of heating oil or gas oil (red diesel) placed on their website or over the telephone.

Furthermore, brokers do not tell you their commission rate as it is calculated into the PPL. So always ask and check your final total. There are many bargains out there, especially from suppliers.

Today's Broker Analysis

Normally we would show a broker price comparison chart. But, because Russia's invasion of Ukraine has caused the oil market to become unstable and volatile, it has impacted crude oil prices in the UK. It means online pricing and availability are majorly affecting UK heating Oil brokers more than distributors.

However, you can place an order on the phone and the broker's supplier will then call you on the day before delivery to advise you of the price and to take payment.

Why waste time? Get multiple quotes from our suppliers and choose the best price and delivery time.

Please remember that some brokers are other trading arms of larger distributor groups.

However, and fortunately for you, there are plenty of prices from distributors around the country.

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Things to do

For current price trends, head on over to our twitter account @ukheatingoils for price indications. Keep up with prices and events. You are most welcome and encouraged to follow us. Then back to heatingoilshop.com to get multiple heating oil quotes from suppliers to your area.

Also check out our post on heating oil tanks and new legislation regarding heating oil boilers. Every heating oil user must be aware of the these changes in legislation and costs associated with heating oil spills and leakages.

There is also a very nice piece about whether or not the heating oil is the cheapest fuel. Click here.

Summary

Heating oil prices  are high at the moment and are likely to remain that way for at least a couple of months. Our main concerns are demand outstripping availability not just here but globally.

Heating oil prices have clearly risen beyond expectation. Itis imperative to stay ahead of the game and keep an eye on crude oil prices. We encourage all customers to regularly check their tanks. Then get multiple heating oil quotes & order on the best price possible.

 

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