What Influences Heating Oil Prices?

Written on: September 4, 2023

You can count on Kimlin Energy for your heating oil needs

cost of oil Millbrook, ny At Kimlin Energy, we give our customers fair, competitive, and transparent heating oil prices. What we also give is value: For that price, you also get dependable heating oil delivery and expert equipment services from a local business that has been serving the Hudson Valley for more than 40 years.

We can also help you convert your home to propane for heating, water heating, gas cooking, and more!

Factors that impact heating oil pricing

Although heating oil prices experienced significant highs last winter, it is important to acknowledge that they are subject to fluctuation. During periods of moderate and stable prices, people are generally satisfied with lower bills. However, when prices suddenly increase, consumers become curious about the factors that influence heating oil prices and seek to understand the reasons behind these fluctuations.

Here are some things that affect how much you pay for your heating oil.

Crude oil pricing. Heating oil is derived from crude oil, and as such, the price of heating oil is greatly influenced by the price of crude oil. Since crude oil is a commodity, its value is determined by the laws of supply and demand. Consequently, any factors that impact the global economy or the supply of crude oil will ultimately affect the cost of heating your home.

Seasonal supply and demand: Heating oil prices tend to rise during the winter months when demand is high. Conversely, in the summer, heating oil prices hit their lowest point. At Kimlin Energy, we strive to procure supplies during the summer when prices are at their most favorable, allowing us to pass on those savings to you.

Operating costs. The price of heating oil is influenced by various factors, including labor costs, transportation expenses, and storage costs. Like other businesses and industries, these factors impact the overall pricing. For instance, when gasoline and diesel prices increase, it results in higher costs for the delivery of heating oil supplies, the operation of the trucks used for transportation, and our equipment service vehicles.

Weather. Did you know that the Northeast region is the largest consumer of heating oil, accounting for 90% of the nation’s usage? This means that what happens here can directly affect your heating oil prices. The primary factor influencing prices is the weather. During extremely cold winters, demand rises, leading to an increase in heating oil prices.

How Kimlin Energy helps you manage your heating oil costs

The common way of managing heating oil costs is to pay upon each delivery. However, this can create some big bills in the winter when you have other large expenses like the holidays, tuition payments, and tax bills.

Kimlin Energy offers several pricing and payment plans that let you manage your heating oil expenses in a way that best suits your household. Let’s go over them.

E-Z Pay Advantage: With this convenient plan, your heating oil costs are evenly distributed over 12 monthly payments. This allows you to have a clear understanding of your monthly bill, making it easier to manage your expenses and budget effectively.

Price Cap: You’ll have peace of mind knowing that the price per gallon for your heating oil remains fixed, regardless of market fluctuations. Say goodbye to worries about sudden price spikes – we’ve got you covered with Price Cap!

Prebuy: You have the opportunity to purchase your heating oil in advance of heating season when prices tend to be lower. By agreeing to buy the exact amount of gallons you’ll need for the entire heating season, you lock in that price.

If you are struggling to pay your heating oil bills, don’t let fear or pride stop you from getting help. We’ll work with you, so you don’t fall behind on payments. You can also contact your local Home Energy Assistance Program.

Get reliable heating oil delivery and great service from Kimlin Energy! Become a customer today.