January 21, 2016
In case you haven’t noticed, oil heat prices are continuing to fall, and with industry experts predicting prices to remain lower for the next couple of years, oil heat is where it’s at. In Pennsylvania, the average price for home heating oil this week is about $1.86 per gallon, whereas residential propane is averaging around $2.72 per gallon. That difference can add up quickly, especially when filling a tank!
So what’s been happening with these prices?
The rules of supply and demand are really in favor of oil heat consumers—supply is very high when the demand is not growing quickly enough to keep up. There are several factors that have effectually caused this. Firstly, U.S. oil production has doubled in the last six years. Couple that with an increased market share in Asia, creating new competition which has forced Nigerian and Algerian oil prices to drop in order to stay competitive. Also, with investments in alternative fuels as well as increased energy efficiencies, the demand in places such as Europe and developing countries has decreased.
All of these factors have led to a dramatic decrease in oil prices. This year, the average homeowner is expected to spend $750 less on fuel costs than last year, allowing them to spend their hard earned money on things other than energy bills—the lowest winter bills in over a decade, we might add.
What should you be doing?
Industry experts are saying that these prices aren’t going up anytime soon. In fact, predictions for under $30 a barrel have been rumored, expecting to average out at about $38 in 2016. This means that this is a trend worth sticking around for.
These are great times to think about placing more investments in your home in terms of your heating. Is your system 15 years old or older? Chances are that you are you could benefit from an upgrade to a modern oil heating system. With new advances in energy efficiency, a new system can greatly reduce your heating bills. So, you can save money on the costs of heating oil and also burn less fuel every winter to boot! Don’t need a new heating system? You still can revel in the amount of money you’re saving on your fuel costs.
If you are looking for a growing, domestically-produced product to be the source of your home heating needs for years to come, look to home heating oil. With the lowest fuel costs around, increased energy efficiencies, and a bright future ahead of it, heating oil is the smart choice to heat your home.