Residential Heating Oil Price Fluctuation Explained

Though the bulk of the residential heating marketIn some areas, several suppliers compete for
has switched to natural gas in most regions of thetheir share of the residential heating oil market.
United States, approximately 8.1 million of the 107This competition can often result in higher prices
million homes continue to use heating oil as theiras well. A final factor that affects the price of
main source to heat their homes. Of this 8.1heating oil is operating costs. In more remote
million, nearly 82% of these homes are located inareas, the transporting of the fuel to inhabitants
the Northeast region of the United States, andcan be much more costly, resulting in higher prices
these homeowners are extremely interested infor those consumers. These operating costs are
the foreign and domestic oil market because itaffected by employee wages, equipment costs,
can really affect their wallets and pocketbooks inlease or rent for the dealer, etc. All of these
the frigid months of late October through March.factors are present when the monthly bill reaches
Many variables influence the rise and fall of thethe homeowner.
price of heating oil. One of the largest of these isThere exist many ways to lower heating bills in
demand. During the winter months, more oil isthe depths of winter. The easiest can be achieved
needed by consumers, and the price increases.by the homeowner him or herself, simply by
Many homeowners try to beat the system bywinterizing the home. Proper insulation within the
filing their storage tanks at the lower prices ofwalls of the house combined with energy efficient
summer, but few own tanks large enough to getwindows and adequate caulking and weather
them through the winter months. Moststripping around them can result in a much more
homeowners must have their tanks filled andcozy abode that requires less heat to be
refilled up to five times during the course of onecomfortable for its inhabitants. Budget plans also
New England winter, so higher prices can makeexist with most dealers to help spread the cost
for a lean holiday season. A typical homeowner inof heating during the winter months across the
the Northeastern United State might useentire year of bills. Though consumers cannot do
650-1000 gallons of heating oil during the winteranything to influence the price of oil directly, by
months. Another contributing factor in the price oftaking proper precautions at home to conserve
heating oil is, of course, the price of crude oil, alsotheir energy, they can be less affected by
influenced by supply and demand.inevitable price changes.