Oil Prices: How Low Will They Go? And How will it Affect Your Home Heating Oil Costs?

Earlier this year, oil prices fell to below $50 a barrel. This is the first time that the world has seen such low prices since 2009. Later, costs crept back up to just over the $50 mark, but the indication is clear. Low oil prices are currently here to stay; and indeed, many experts predict that they may fall even further.

Heating Oil Suppliers and Oil Experts

The low costs of oil are having huge impact on the industry as a whole; and as a result, some oil suppliers are calling for production cuts in order to increase demand and drive prices upwards. However, large oil producing groups such as Opec are resisting such measures, which may push prices down even further.

Michael Hewson, CMC Markets analyst, comments: ‘With no sign that Opec will do anything about over-production, it seems likely that we could well see further declines towards $40 in the coming weeks.’

The Knock-On Effect of Low Home Heating Oil Prices

Of course, for those who using home heating oil, news of decreasing oil costs is inevitably well received. When buying through a heating oil supplier who passes the price reduction directly to the consumer, this means significant savings for the end-user.

However, for oil producing countries, the falling prices have spelt economic crisis. For nations such as Russia and Venezuela, who rely heavily on oil as one of their main exports, the dropping oil prices have had a significant impact, especially countries such as Russia, who are not tied to the dollar.

Passing Savings on to the Consumer

ValueOils have always maintained a strict policy of passing savings wherever possible to their clients. However, the same cannot be said for other oil suppliers, who instead, take advantage of the low prices, and boost profits by not reducing their retail prices accordingly.

Earlier this year, politicians called for lower oil prices for consumers, with George Osborne tweeting that it was ‘vital’ that the savings were passed on to ‘families at petrol pumps, through utility bills and air fares’.

However, the US treasury secretary, Larry Summers, points out that there may be environmental risks associated with lower oil prices. Cheaper fuel, for example, may inspire more people to use their cars more frequently, which in turn, would raise carbon emissions. Of course, as is so often the case in these situations, there is no ‘black and white’ answer, and Value-Oil’s recommendation would be to enjoy the reduced costs of oil, but to aim to use your heating system sensibly throughout the year.

When Should You be Buying Home Heating Oil?

Certainly, it seems likely that the low prices aren’t going anywhere, or at least, aren’t set to rise in the near future. However, the summer months are often a good time of year to stock up on home heating oil, as demand is inevitably lower. Leaving it until the winter is seldom a great idea, as this is the season when you need your heating most, and it’s not advisable to leave purchasing oil to the last minute.

Clever Tricks to Protect your Heating Oil Supply from Theft

In spite of the UK experiencing the cheapest heating oil prices in years, oil theft still remains a big problem. Many people across the country who rely on oil to heat their homes find themselves the target of oil theft, as opportunist thieves syphon their valuable oil in the night; leaving the tank empty and the owners often hundreds of pounds out of pocket.

Oil Prices: Does it have an Effect?

Many people believe that the current low fuel prices, UK and across the world in general, should technically serve to reduce the rate of oil crime. After all, logically it makes sense. If oil is seen as a less expensive, less valuable commodity, wouldn’t this naturally curb the criminal’s appetite for stealing it?

Sadly, there doesn’t seem to be a correlation between current low oil prices and theft. Rates of oil crime still remain the same as ever, despite the fact that the UK has seen some of the cheapest heating oil prices since 2009.

Protecting your Investment

Purchasing oil should always be seen as an investment, even if it is the cheapest heating oil in years. As a result, it’s important to protect it from thieves as effectively as possible.

Here are a few helpful tips to ensure that your oil supply stays in your storage tank.

2. 1. Move it closer. Many oil thieves deliberately seek out oil tanks that are positioned a good distance away from the property. There’s an obvious reason why they do this; it makes it that much easier for them to steal the oil without being detected! To avoid this, arrange to have your tank moved closer to your home, preferably within eyesight.?

2. 2. Light it up. A motion detector light is an excellent way of deterring would-be criminals. Positioned near to your tank, the device will automatically flood the area with light if it detects any movement, which is likely to cause even the most brazen of thieves to think twice about stealing your oil.

2. 3. Get covered. Another effective way of ensuring you avoid oil theft is to disguise your oil tank as best as possible. Rather than leaving it exposed and advertising to passers-by that you have oil on the premises, plant some trees or bushes around it to conceal it from view. Fences also provide good coverage.

2. 4. Make it difficult. Make it as tricky as possible for any criminals to access your oil by using a lock. A shackle padlock is particularly effective, as the metal loop on this padlock is hardly visible, which makes breaking into it with bolt cutters that much more complicated.

2. 5. Time for alarm? A remote oil gauge will alert you if there is a sudden, unexplained drop in your heating oil levels; which will enable you to respond quickly if someone is attempting to steal your oil.