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Why Do Heating Oil Prices Fluctuate?

Date: November 22, 2021

How prices are determined and how to protect yourself

rising oil prices massachsuettsIf you have heated your home with heating oil for a while, you likely have noticed that heating oil prices can spike and sink very quickly over the course of a heating season.

You may be worried about heating oil prices because of the way prices for everything are going up these days. We’re here to explain how heating oil prices are determined, and why they are so vulnerable to fluctuations.

Heating oil pricing can have multiple causes

You may be perplexed as to why the cost of your heating oil fluctuates so much. There are a number of causes, and it’s most commonly a mix of factors that influence how much you spend on heating oil.

Global markets. Heating oil is made from crude oil, a globally traded commodity. The price of crude oil affects the price of your heating oil. Some things that affect the cost of oil include geopolitical conflicts involving oil-producing countries, OPEC’s production levels, and natural calamities that impact oil refining locations such as Houston.

Changing weather. In the United States, 90 percent of the heating oil is consumed in the Northeast. Heating oil costs may decrease in a warmer than usual winter; however, they will rise in a colder than usual one. Sorry to tell you this, but this winter is predicted to be cold and snowy here in the Greater Boston.

Competition. If there are several heating oil delivery companies in an area, that competition can drive prices down. Shop around, and you’ll see the Cubby offers competitive pricing.

Government policy. Policies can be designed to encourage or discourage the use of home heating oil, and if the production of heating oil is anticipated to drop as a consequence of a new policy, so will prices. That’s especially true if the weather causes an increase in demand for fuel.

Cubby helps you control your heating oil costs

One way Cubby helps you keep your heating oil costs down is by delivering only premium B50 Bioheat SuperPlus™. It is made with 50% biodiesels made from renewable resources such as plant oils, recycled restaurant cooking oils, algae, and more. It helps your heating system run more efficiently, so you cut your energy costs without sacrificing comfort.

We also provide expert heating system maintenance and repair services by our certified, skilled service technicians. Regular maintenance keeps your furnace or boiler running at its best possible efficiency, so you spend as little as possible to heat your home. An annual maintenance tune-up is included in all our service plans.

When it comes to managing your heating oil costs, Cubby knows our customers have individual needs. That’s why we offer several pricing and payment options to choose from, so you can take care of your heating oil costs in a way that best suits your needs and your budget.

Contact us to learn more about controlling your heating oil costs.

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