Learn How Fuel Oil Prices Will Go Up: Get Affordable Heating Oil Delivery Sussex NJ By Contacting Charity Oil Today

If you use home heating oil to heat your home, then you know all about those fluctuating prices. It’s evident each and every time you fill up your oil tank. The price differences are quite obvious from one season to the next.

Recently a lot of home heating oil prices have remained reasonably low. That has been a real help to us to keep our home heating expenses down. The current decision has been made to reduce the global supplies. This puts us in the position of needing to learn just how the home heating oil prices calculations are performed and how to apply those facts to our own circumstances.

Within this article we’ll discuss the things that affect our home heating oil prices, exactly what and who OPEC is and how their production decisions affect you. We’ll also go over some things you have within your own power to lower you home heating oil costs.

How Heating Oil Prices Are Calculated

Again, the heating oil prices are always changing from one season to the next. Those who use fuel oil to heat their homes find it very useful to know what affects those prices to see what they can do to adjust their situation to a more favorable outcome. They know they need to have knowledge of how the system works in order to accurately budget for the new heating season they are approaching. Oil prices are affected by things from 4 different categories:

Seasonality: Any time the crude oil prices are stable the prices for heating oil tend to go up. Whenever there is a high demand for heating oil the cost will be more. Naturally, warm winters are also easier on your heating oil bill.
Crude Oil Costs: Whatever the current cost for crude oil happens to be will have an impact on the price of heating oil. The Energy Information Administration in the U.S. put out an article that discusses this in more detail:

Crude oil prices are determined by worldwide supply and demand. Demand can vary worldwide based on the economy and weather in addition to other factors. Supply can be influenced by weather events in the United States and by political events in other countries. The supply of oil produced by members of the Organization of the Petroleum Exporting Countries (OPEC) can also affect world crude oil prices.

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Local Markets: The number of companies delivering heating oil in your local area will also affect your fuel oil costs. This is due to the competition between local markets. The more suppliers competing the lower your costs will be.
Operating Costs: Each company carries its own overhead expenses to maintain operations. They have expenses like employee training, delivery costs. Insurance coverage, employee wages, and more. The expenses for these companies will vary from one company to the next.

The factor that has the biggest impact on heating oil prices is nothing more than ‘supply and demand’. Cold winters raise demand levels because of increased usage. Prices rise along with that demand due to storage and delivery issues. Not all fuel oil demands come from within the United States. Some delivery comes from Europe and various other areas. The levels of these outside demands also play a part in heating oil prices.

OPEC

OPEC Defined

The ‘Organization of the Petroleum Exporting Countries’ (OPEC) was formed in 1960 and has a mission that affects all the world’s top exporters of oil.

The purpose of OPEC for members is to “coordinate and unify the petroleum policies of its Member Countries and ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry.”

OPEC members collectively supply about 45% of the world’s crude oil production.

Together, OPEC members control about 81% of the world’s total proven crude reserves.

OPEC member countries monitor the market and decide collectively to raise or lower oil production in order to maintain stable prices and supply.

A unanimous vote is required on raising or lowering oil production.

Each member country controls the oil production of its country, but OPEC aims to coordinate the production policies of member countries.

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OPEC’s Decision-Making Factors For Lowering Oil Production

What you pay for your fuel oil is very heavily impacted by OPEC.’s decisions. They have actually decided to lower production for the first time in the past 8 years. They are choosing to produce 32.5 barrels per day rather than 33.8. The results of this decision will become effective on January 1st of 2017.

The reason behind this decision was influenced by the desire to stabilize the market. Over the past 2 years crude oil prices have gone down significantly due to an over-supply and the booming U.S. Shale production. Just 2 years ago the price of crude oil was $100 per barrel and then it dropped to $50 per barrel.

At the first of 2016 we saw the price go as low as $30 per barrel. Once those news reports were out, on November 30th, the oil prices went up to more than $49 per barrel. It was at that time that Russian and other non-OPEC countries were on-board with lowering production to help stabilize the market. It should be noted here, however, that in the past some OPEC decisions haven’t held up. The Wall Street Journal put out an article discussing this in more detail:

Some OPEC members have a history of not sticking to agreements. The cuts may not be deep enough to offer a significant boost to the oil price, while any big gains will only encourage greater supply from non-OPEC members, in particular the U.S.

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How Does All This Affect You?

If these things do come about, then your fuel oil expenses will definitely go up. The experts are claiming that they don’t expect the price to go as high as $100 per barrel like a couple of years ago but ‘will rise’. That means your costs are going to go up. You have 2 things that you can do yourself to curb this rise of fuel oil prices:

1. Winterize Your Home:

This can involve taking actions like the following:

Replace Worn Out Weatherstripping
Insulate Your Attic
Lock Your Doors & Windows
Give Your Heating System a Tune-up
Ensure Your Chimney Isn’t Losing Warm Air
Cover Patio Doors/Windows Using Clear Plastic
Eliminate Any/All Drafts (around electrical outlets, etc.)
Seal Any/All Leaks in Duct-work
Open Curtains on Sunny Days
Install Programmable Thermostat
Locate Discounted Heating Oil

Knowing about these energy-saving strategies can save you money on your overall heating bills during the cold weather. Additionally, you will find that your home is more comfortable because you have taken precautions against cold air getting into it.

2. Locating Discount Heating Oil

One of the greatest things about the Internet is the ability to do ‘comparison shopping’. You have an excellent tool for locating discount fuel oil for heating your home. You should always stay aware of just how much heating oil you have in your tank. That way you can order in time to be replenished before you run out. Due to the fact there is no ‘automatic delivery schedule’, the responsibility is on you to make sure you order on time sp that you don’t run out of fuel oil.

Online Ordering Benefits

The timing for a #2 heating oil refill can fluctuate. That makes the option of online ordering such a valuable tool. Keeping a keen eye on your supply helps you to more accurately know when to order more fuel. By doing this, you can be in charge of your delivery schedule. Additionally, you will have to be on top scheduling maintenance for your system. This is also beneficial because you won’t have to pay the extra maintenance charges that are included in automatic delivery plans. You will pay for maintenance on an as-need basis. Online ordering gets your order request completed in just minutes. You can order and kick back a few minutes later confident that your replenishment oil is on its way.

Heating Oil Delivery Sussex NJ

You can significantly reduce your home heating costs by following the above steps. The combination of winterizing your home and making it more energy efficient makes a huge difference. Furthermore, when you order you fuel oil online, you will pay reduced prices in comparison to full service delivery options.

By knowing that heating oil prices will go up in the near future, you can plan accordingly by taking these steps. Find a reputable heating oil delivery company that offers high quality and affordable heating oil deliveries. Be sure to contact Charity Oil today.

We service Augusta NJ 07822, Branchville NJ 07826, Franklin NJ 07416, Glenwood NJ 07418, Hamburg NJ 07419, Highland Lakes NJ 07422, Lafayette NJ 07848, Mc Afee NJ 07428, Ogdensburg NJ 07439, Sussex NJ 07461, Vernon NJ 07462, Unionville NY 10988, and surrounding areas.