What Influences Heating Oil Prices?

Date: July 28, 2023

Factors that Drive Energy Prices

oil prices in massachusetts While your Massachusetts heating oil company cannot control what happens in the global energy markets, it’s helpful to have some understanding about why heating oil prices rise and fall on a steady basis.

It begins with crude oil prices, which is usually the most important factor in the pricing of your residential heating oil. Like gasoline and jet fuel, heating oil is just one of the many products refined from crude oil. Crude oil is a globally traded commodity which means that it is subject to many forces that drive its value up or down.

Overall Supply and Demand

Over the last several years, 5% of U.S. refinery capacity, along with 6% percent of European refinery capacity, has been lost. While the pandemic, which drove fuel usage down significantly, played a role in this, there were other factors. Some older refineries were shut down because they were inefficient, and their profits weren’t large enough for Wall Street investors. Other refineries were closed so that their owners could convert them to produce biofuels*.

Operating Costs

U.S. heating-oil prices are typically driven by the use of oil in homes in the Northeast, which consume about 90% of the heating oil used in the country. In a brutally cold winter, prices often rise because of heavy seasonal demand. In addition, labor costs, transportation, and storage expenses contribute to the price of heating oil just as they do for other businesses and industries. When gasoline prices go up, heating oil suppliers must pay more both to get heating oil supplies delivered to them, and to operate the trucks that deliver fuel to residential heating oil tanks.

View a long-term history of heating-oil prices in Massachusetts.

Reliable Heating Oil Service in Massachusetts

Even during difficult times, full-service heating oil companies have secure access to a secure supply of fuel and well-maintained trucks to deliver it. Heating fuel suppliers also have a staff large enough – or expert partnerships with service companies – to provide excellent customer service and technical expertise.

Your local heating oil company takes pride in their responsive service and they truly care about your comfort and safety. That’s why you can always expect a fast and courteous response whenever a situation arises where you need help in a hurry.

Responsiveness and dependability are among the most important attributes of full-service Massachusetts heating oil company.

Service Plan Coverage

The majority of heating oil companies in Massachusetts offer service plans for your heating equipment, many of which offer different levels of coverage

These annual plans provide homeowners with a variety of benefits. These include preventative maintenance (tune-ups) that keep your system operating at peak efficiency. A service plan also guarantees you emergency heating service should you ever lose your heat. Many service plans also offer significant discounts should covered parts need to be replaced.

The bottom line: your full-service heating oil company is always looking for ways to help customers save energy and money. One of the most valuable programs they offer is service plan coverage.

If you want to ease your worries going into winter, please reach out to your heating oil company and ask about service plan coverage. Having this coverage can bring you priceless peace of mind.

*Source: NY Times, 11-10-22