Understandably, people who heat their homes with oil always have concerns about where heating fuel prices may be headed. Yet it’s often hard to predict which direction prices will go because there are many factors that cause energy prices to rise and fall.

This includes unforeseen events like severe weather and global politics that affect energy production. Examples include destructive hurricanes temporarily shutting down major refineries or an international crisis that may have an effect on oil production.

Although events like these may not actually lead to any actual shortages, fuel prices around the country—including gasoline, diesel, heating oil and other fuels—can all rise based on speculation in the stock market about what could happen in the coming weeks and months. This is often referred to as the “fear factor.”

On a local level, seasonal demand, overtime expenditures, various other operational costs and even competition between dealers can result in price fluctuation.

The good news

While heating oil prices are a little higher today than two years ago when they hit a 13-year low, the Energy Information Administration reports that we’ve reached a “new normal” in heating oil prices. Thanks to the increase in domestic supply, coupled with a reduction in global demand and a strong U.S. dollar, oil prices are expected to stay stable for the foreseeable future.

The U.S. is producing so much oil right now that we are moving toward being a net exporter of oil, rather than a net importer. This could become a reality within the next 10 years, according to the U.S. Department of Energy.

To take away any worries about the normal ebb and flow of oil prices, many heating oil dealers in the Hudson Valley offer programs designed to save their customers money and keep heating bills manageable—even during brutally cold winters like the one we just experienced.

To become more knowledgeable about heating oil prices, contact PRO$ today.