Cheap Oil Prices…How Long Will it Last?

There’s no doubt about it, oil prices in the UK and Northern Ireland have dropped to remarkably low prices much to the pleasure of those who rely on oil to heat their homes.

The abrupt drop in fuel price in the UK took virtually everyone by surprise, even the most seasoned fuel forecasters. Now, the big question is: will the oil prices remain low, or will they gradually creep upwards once more?

Soaring oil prices NI & UK?

The cynics among us agree that the drop in fuel price can only be a temporary thing. After all, historically, oil prices have always fluctuated, and a rise after a fall in price must surely be an inevitability.

Not so, according to some experts. Mohamed A El-Erian from Bloomberg View, dares to contradict this opinion. Rather than seeing the lowered price of oil as a natural part of fuel fluctuation, he states that the world as a whole is experiencing a ‘fundamental shift’. The well-established supply model is being challenged, and changing mind-sets towards the supply of oil are likely to have ‘long-lasting effects’.

Falling fuel prices UK… the reason?

There are several contributing factors to this seismic shift in the oil market, but the main change is coming from Saudi Arabia; who are now no longer content to artificially limit their oil supply in order to support inflated prices. Doing so in the past has actually cost the country significant market share, and they are not willing to run the risk of losing out again.

The effect of this? Low prices, according to El-Erian, will close down unprofitable oil fields, not to mention other forms of energy supply. Whilst prices are low, demand will increase, resulting in an extended period of time where low oil prices can be enjoyed.

Inevitable return

El-Erian, despite his optimistic predictions for the price of oil, acknowledges that in the end, prices must surely rise again; though he anticipates there will be an extended period of lower rates for cheapest heating oil system owners across NI and the UK. However, these strange times won’t come without considerable shake-up. Importing countries will benefit from the change. Exporters, such as Iraq, Nigeria and Russia, will not. In short, big changes are afoot, and it’s anybody’s guess as to what the outcome will be. Low oil prices NI – cashing in

The official advice at present is to make the most of the low oil prices whilst you can. Whilst they may continue to be low for a while yet, the bottom line is that there is no guarantee. Oil is a market in a continual state of ebb and flow, and even the experts struggle to predict exactly what will happen to prices in the future.

Low oil prices at Value Oils

If you want to benefit from the low fuel prices at present, get in touch with the Value Oils team today. We always ensure that our prices are in line with wholesale rates. If the wholesale rate comes down, we’ll guarantee to pass the savings on to you, without exception.

Home Heating Oil The Facts…and the Fiction

Few sources of energy for the home are as misunderstood as heating oil. There are a lot of common misconceptions surrounding oil; which can deter people from choosing to heat their home using this method. Here is a brief guide, outlining the facts of using heating oil systems for your home…and debunking some of the myths!

Home heating oil: The Facts

1. It’s not dangerous.

Firstly, a fact. Any heating system has the potential to be dangerous, regardless of how it is fuelled. If the system is not properly maintained, serviced and looked after, then it can present a danger in the home.
However, with the right care and attention, heating oil is not dangerous. If stored correctly, it poses no threat to anybody; though it is important to ensure that your tank is checked regularly for leaks. If your boiler is regularly serviced by a qualified heating engineer, then your heating oil system is no more hazardous than any other form of heating.

2. It’s not expensive.

Another common misconception is that oil is expensive, and as a result, it’s not cost effective to heat your home using a heating oil system. This simply isn’t the case. Unlike other fuels, oil prices are in continual fluctuation; which can sometimes result in raised prices, but can also mean low prices too.

Most savvy oil heating system owners tend to buy in bulk when rates are good, and purchase less when prices are higher. Indeed, those who use oil to heat their houses are particularly delighted at present, as oil prices are remarkably low, and they are making significant savings on their heating bill. There are also several other ‘tricks of the trade’ to ensure you keep your heating costs down.

3. It’s not bad for the environment.

When it comes to the environment, oil really does get a bad press. However, when compared to the emissions released by a gas boiler, oil boilers actually produce less harmful CO2. Many people who heat their home using oil also form buying groups with neighbours; which reduces CO2 emissions from tanker delivery.

4. It’s efficient.

Do you think home heating oil is inefficient? You’re not the only one. In fact, this is one of the most common misconceptions about oil, with many people believing that their home heating oil prices are too high, given the amount of energy generated.

The fact is that oil tends to produce more energy than other fuels, when measured using the same quantity. Obviously, it is difficult to compare fuels precisely, as they take a variety of forms; but the fact is that oil actually releases a lot more heat than other forms of fuel, and is very efficient (providing the system is well maintained).