Heating Oil Prices 2014

What heating oil price trends can you expect in 2014? ValueOils.com monitor heating oil prices on a daily basis and often find that the price will do the opposite of what would normally be expected, with peaks and troughs throughout the year.  We recommend keeping an eye on political unrest around the Middle East and the UK Exchange Rate as well as the weather forecast. We always recommend that you stick to your budget and order well in advance of running out. A number of factors which played a key part in heating oil price movements throughout the 2013 are listed below.  There are significant savings to be made – in Northern Ireland for example, where margins tend to be particularly tight, a customer purchasing 1,000 litres of heating oil could save up to £100 by buying at the right time.

Cold weather in spring 2013

According to the Met Office, March 2013 was the second coldest in the UK since records began in 1910 with the UK average temperature around 2^oC.  As any fuel distributor will tell you, when the mercury drops and temperatures are low, demand increases. Spring 2013 also saw a significant snowfall across the UK which put added pressure on distributors as many roads throughout the country became dangerous or impassable. Extremely cold weather and rises of up to 60% in demand can often see prices increase.

Political Unrest in Egypt / Syria

As Andy Murray was playing in the Wimbledon Final, (and the court side temperature hit of 104^o Fahrenheit!) there was serious political unrest developing in Egypt and Syria.  Although neither of these countries produce a large volume of oil, the tension made traders wary of the potential closing of the Suez Canal. There was a surge in heating oil prices during July of almost 3 pence per litre, which went against the expected norm for the time of year.

UK £ vs $ Exchange Rate

The UK currency has been performing well recently against the dollar and this has helped heating oil prices remain substantially lower than they were in December 2012. The pound was weakest against the Dollar during July and has recently risen to its strongest level of 2013. Unusually, prices are currently lower than they were during the summer which shows that it doesn’t always pay to stock up during the summer months.

How to lower fuel bills in 2014

Finally, the key question for customers is how to reduce fuel bills in 2014.  Assuming the price of oil does not change, there are a number of factors which you can consider that will increase the fuel efficiency of your home:

• Upgrade your boiler to a condensing boiler – OFTEC suggest this could save you up to £200 per year.
• Have your boiler serviced by an OFTEC approved engineer – we now offer this in most areas of the UK.
• Insulate walls and upgrade your windows to double glazing if you currently have single glazing.

If you have any questions about our heating oil prices or have any suggestions on how to help others save on their heating bills, please get in touch with us below and we will get back to you as soon as we can.