Low Cost Heating Oil

There Are Many Factors that Contribute to Heating Oil Prices in South Carolina

Heating oil, like gasoline and diesel fuel, is a “finished” product derived from crude oil, so its price is closely tied to the price of crude oil. U.S. production of crude oil has been soaring in recent years, and that has contributed to much lower prices.

And while it’s true that external factors (like global politics, the weather, supply disruptions, etc.) can impact energy prices, the good news is that the fundamentals of the heating oil market right now are stable, and expected to stay that way for a number of years.

That’s because there is a strong sense from numerous energy market experts (like the Energy Information Administration and other financial experts) that we have reached a “new normal” in the economics of energy prices. The U.S. is producing more oil than at almost any time in its history. And global demand for energy has fallen as some large, energy-consuming countries have seen their economies contract or experience slow growth. When supply rises and demand falls, prices fall with it. This led to the 13-year low in heating oil prices in 2016 and is the reason that experts expect low prices to stick around.

Ways to Save

One thing that always pays off no matter whether prices rise or fall is to cut your fuel consumption. There are many ways you can minimize your winter heating bills and maximize your comfort.

  • Remember that efficiency beats switching fuels. The Consumer Energy Council of America says switching fuels is a “costly and long-term gamble”; you can lose thousands in conversion and installation costs. To reduce your fuel bills, the best solution is to invest in efficiency.
  • Make sure your boiler or furnace is operating at peak efficiency by having a professional tune-up. It can help you save 5–10% on your annual fuel bills.
  • Evaluate your home’s insulation. You can save a lot by properly insulating ceilings, and by sealing, caulking and weather-stripping your windows and doors.
  • To take away any worries about the normal ebb and flow of oil prices, many companies offer programs designed to save you money and keep your heating bills manageable—no matter what happens with world oil prices.

Read more about oil prices.