Cheapest Heating Oil Prices for Years… Are They Here to Stay?

The current low oil prices are continually the subject of articles in the newspapers and online; with many experts speculating as to what the exact reason for the drop in price is, and more importantly to the consumer; just how long these low oil prices will last.

There has been endless debate; with some suggesting that the increasingly cheap rates will inevitably start to climb back up in a few months, and others claiming that the low prices are here to stay, or at least for the foreseeable future.

Of course, as a home heating oil buyer, this has considerable impact on you, and others like you. The cheapest heating oil prices in years have enabled buyers to stock up on supplies at a greatly reduced rate, and enjoy heating at the lowest price they’ve experienced in a long time. But the big question is… how much longer can it possibly last?

Fuel prices UK: The current situation

Over the last four years, oil prices have quite literally nose-dived; slumping from approximately $110 per barrel (£72) to just $48 a barrel (£31). That means that oil has quite literally halved in value, which has caused the oil industry considerable alarm. Indeed, members of the Organisation of Petroleum Exporting Countries proposed a cut in production in a bid to raise prices once more, though this was opposed by both Saudi Arabia and Russia.

What are BP predicting?

Bob Dudley, one of the directors at oil company, BP, claimed in a recent interview that they were preparing for a prolonged period of low oil prices. In fact, his tentative prediction was that the reduced rates could continue for as long as 3 years.

Although this is happy news for those looking to enjoy the cheapest heating oil prices, it’s not such good news for those who work in the industry; as it could result in job cuts and lower investment in the industry as a whole. Dudley acknowledges that in the end, despite Saudi Arabia and Russia’s stance on the matter, oil companies will eventually be forced to limit supply, in order to get the market going once more.

He states, “…we're going to need to rebase the company based on no guarantees at all that the price will come back up. We have go to plan on this [price] being down, and we don't know exactly what level, but certainly a year, I think probably two and maybe three years."

When is a good time to buy home heating oil?

In short, now is an excellent time to buy, when prices are at their lowest in years. Although predictions seem to indicate that you can enjoy these low rates for a while longer yet, it’s always important to remember that the oil market is a highly volatile one; and dependent on a number of external issues, such as politics… and anything can happen!

To find out more about ValueOil’s current low oil prices, simply get in touch with the team on 0905 88 90 100.

For more information : heating oil, home heating oil prices, Oil Prices NI