Heating has always been required, since the Stone Age days when man first discovered fire. Today we use more sophisticated fuels, such as petroleum, heating oil,kerosene, and otheroil-based substances. The cost of all fuel is in a constant state of change, with so many different variables affecting the end price the consumer must pay.
The variables of oil pricing
The main factors that affect the price of oil are,
- Global oil prices
- Transportation costs
- Weather conditions
- Supply and demand
- Foreign exchange rates
All of these factors can affect the price of oil, which means there can be a large swing in prices at any given time. Add to this the VAT levied by governments on all oil products.
Oil exporting nations
The Organisation of Petroleum Exporting Countries, or OPEC as it is known, controls global oil prices. This cartel meets on a regular basis, and they decide on the cost of crude oil, per barrel, according to supply and demand, as well as the oil production figures of the member countries.
Logistical challenges
The task of shipping oil worldwide, and then delivering it to the refineries, who in turn then send the oil to the retailers, is a monumental challenge. Most of us never consider how the fuel we use arrives at its final destination, we take it for granted that the product will be there when we require it.
A spanner in the works
The regular supply of oil can be severely restricted when there is a global shortage, caused by a drop in production. In the early seventies, Europe felt the consequences of a massive drop in OPEC oil production. Fuelled by a weakened economy, petrol was rationed, something unheard of since World War II, and industry almost ground to a halt. Long queues at petrol stations were a common sight, as ordinary people went about their daily routines.
Global stability
Fortunately, today’s stable economy means that oil is available to all, with a slight decrease in demand, which has resulted in crude oil prices plummeting to below 30$ per barrel, a far cry from the 80$ price a decade ago. Political stability, especially in the Middle East, is another governing factor over global oil prices.
Seasonal fluctuations in prices
The time of the year can have a dramatic effect on demand. Winter is the time when demand soars, as one would expect. Colder climates will use much more oil-based products than the warmer countries, and this is taken into account when pricing.Heating prices are available from EMO, should you require it.
Trouble free deliveries
Major oil suppliers have anestablished network, which means your heating oil can be delivered promptly, with the minimum of fuss. Most people will order in advance, and there are easy payment plans, which can spread the load over one year. This is especially important for low-income families, who very much depend on heating oil in the winter months.
