3 Factors That Determine the Cost of Heating Oil
As winter hits, heating oil can be make-or-break for homeowners and businesses alike in keeping your property warm and comfortable in the New York, New Jersey, and Pennsylvania regions. However, the price of heating oil often fluctuates for different reasons, and if you’re looking to control your budget for the winter, you’ll want to keep a few things in mind. The experts at SOS Xtreme Comfort have broken down some key factors determining what you pay.
The Global Market
Heating oil is derived from crude oil, which the United States imports from other countries or generates from domestic refineries. Imports comprise two-thirds of the U.S. supply and are at the mercy of various pricing factors like refinery costs, supply and demand, and more.
Geopolitical relationships may also determine who the U.S. can do business with internationally, and the well-being of these relationships often changes due to economic factors. Similarly, domestic refineries constantly repair and update equipment and battle supply and demand, impacting consumer prices.
The Change in the Weather
Weather is a major deciding factor for the price of heating oil, especially in the colder seasons. If temperatures drop, prices rise. Conversely, prices will decrease if the weather is warmer than expected. Also, major oil producers may experience natural disasters or severe weather events in their locations, which can interrupt production and distribution, and those costs will fall onto the consumer.
It’s recommended to stay one step ahead of the weather with automatic heating oil delivery and supply monitoring so you never have to worry about extreme weather conditions threatening your comfort or costs.
Competition is good. The more oil suppliers there are in your area, the more inclined those suppliers will be to lower prices to beat their competition and appeal to the customer. On the flip side, the fewer suppliers, the more control they have over prices, and the more likely they will rise. Additionally, your distance from distribution centers will affect costs such as transportation, which ultimately factor into your final cost and lead to a price surge.
Why Choose SOS Xtreme Comfort?
For almost 90 years, our family-owned and -operated business has valued delivering outstanding quality to every customer through upfront pricing and dependable service. Leading with excellence, honesty, and punctuality, our team is dedicated to bringing you the best service you deserve and treating you like one of our own. Trust our trained technicians and drivers for superior heating oil delivery and system upgrades, repairs, and replacements.
At SOS Xtreme Comfort, we work hard to deliver outstanding heating oil price protection that guarantees you’ll never exceed the “cap price” we set, no matter how high prices rise in the winter. Moreover, if market prices go below your set price, you’ll still pay the lowest price possible, so everyone’s a winner!