For those new to the world of home heating oil Shropshire, it can be a daunting first experience. Knowing how to keep your heating system running efficiently and effectively throughout the year, along with knowing about heating oil prices, different types of boilers, tank security and lots of other topics. Here are some of the basics you should know.
Why do Heating Oil Prices Change?
A question that many healing oil suppliers are asked on a regular basis is, why heating oil prices fluctuate so much over a year. If you have been following domestic fuel prices, you might have cottoned on to some of the recurring patterns over time.
But what factors specifically have an affect on oil prices? Why is there such a change in domestic heating oil prices? What factors have the most effect on the supply of oil? And, what can you do as the consumer to get the best possible heating fuel prices?
Factors Affecting Oil Prices
There are three main factors which can affect heating oil prices; the price of crude oil, supply and demand and seasonality. These factors are interdependent; so as one changes, so do the others – this can exasperate fluctuations in heating oil prices, or it can help to stabilise them.
- Crude Oil
The price of crude oil is the most significant determinant of home heating oil prices in the UK. This is dependent on two things; market sentiment and global supply and demand.
Market sentiment is best explained as what oil traders believe about the future demand for oil. If the traders believe that the demand for oil will grow (which pushes up the price of oil), they will buy up futures contracts – these are agreements to buy a set amount of oil on a specific day for a fixed price – intending to sell these contracts on at a higher price once the demand has been realised. Equally, if they believe that the demand is going to drop, they will sell the futures contracts that they hold before the price takes a nosedive.
Supply and demand are at the complete mercy of many factors, including; the weather, political events, economic affairs, wars and conflicts and the amounts of oil being produced. These factors can change on an hourly basis, affecting global supply and demand which can shoot the price in one direction or the other. This means that producing accurate domestic heating oil price forecasts is incredibly difficult.
This is how market sentiment and global supply and demand combine to have an incredibly far-reaching effect on your home heating oil quote in the UK, and why even the most trustworthy price forecast can be wrong.
- Seasonality
In the UK, the demand for home heating oil is at its peak from October to March, as these are the coldest months. This increase in demand puts a strain on the supply and as a direct result, the cost of heating oil can skyrocket.
In the summer, when the demand is at its lowest, the price goes down. So although it might sound a bit counterintuitive to buy your winter fuel in the summer, it can in fact lead to getting the best deals for your money. But it isn’t simply supply and demand that has a bearing on your heating oil quote, local competition can also come into play. Where there are many local companies in a market place, some heating oil suppliers will try and undercut their competitors.
Tips to Get the Cheapest Heating Oil Prices
Spending money on heating oil isn’t everyone’s idea of fun, so taking steps to minimise your bill is essential. There are several things that you can do to help you get the best heating oil prices – which can add up to significant saving on your annual energy spend.
- Buy your heating oil when the demand is low
- Avoid having to splash out on emergency heating oil deliveries
- Energy efficient boilers can reduce the cost of heating oil
- Heating oil monthly payment plans
Looking After your Heating Oil Tank
Taking care of your oil tank is absolutely fundamental to ensuring your oil-fired heating system operates efficiently. This is due to the fact that your oil tank is subjected to anything and everything that the British weather can throw at it. Without regular maintenance, things can go wrong.
You should carry out some general checks yourself, this will include looking for signs of rusting, dents, cracks, bulges or even discolouration. Also check for signs or smells of a leak, and if you detect any, you need to call an OFTEC-registered oil boiler engineer. Check the oil gauge is working, because if it isn’t you might have a blockage somewhere or the indicator could be faulty.
Oil Tank Security
Nothing is sacred to thieves – even home heating oil can be a very attractive target. As the temperature falls, oil thieves become more active; you’re most likely to be a victim of oil theft in the first three months of the year as people feel the pinch after Christmas, but the cold weather is still in for the long haul. This is why having effective tank security is a must.
Keep your tank secure by:
- Siting your tank where prying eyes can’t see it.
- Securing the lid of your tank with a high-quality, sturdy oil tank lock.
- Consider installing CCTV overlooking your property.
- Installing security lighting overlooking your heating oil tank.
- Consider using an oil cage as a physical barrier between the tank and the would-be thieves.
- Fitting a loud tank alarm.
- Regularly checking your oil gauge, as a sudden drop could indicate you’ve been a victim of theft.