Oil Price in Nassau County – Call 516-986-2293
Oil Price in Suffolk County – Call 631-714-2999
One of the most common questions people have when they are investing their hard-earned money in fuel oil is why the prices seem to change so much. The price of oil per gallon on Long Island is affected significantly by the state of the global economy from home it might look like the price rises and drops are actually random. We can assure you that they are anything but random! Let’s break it down.
Understanding the Price of Home Heating Oil on Long Island
Let’s first take a look at how much oil the United States consumes per day. Did you know that it’s close to 20 million barrels? Of that 20 million, only half is used for automobiles which leave the other half for distillate fuel oil among other things. That being said, about 178 million gallons are consumed each and every day.
Take into account that there are certain times of the year when fuel oil is in more demand and greater demand means a higher cost. Fuel oil is a cleaner-burning substance and is actually more expensive to produce than typical oil products which obviously makes up a huge part of the problem. Now let’s take into account natural disasters and other problems.
Unexpected Issues That Impact the Price of Oil
There are a number of issues that can impact the price of oil, for example, Hurricane Katrina in 2005 made a significant impact on the economy while increasing the price of crude oil prices for various reasons. In September, those prices rose to $3.07 per gallon though they dropped back to their normal price in November. This is a great example of events that influence the price of oil, but as the prices raise something else affects the crude oil cost.
As fuel oil prices in NY skyrocket, more people tend to stay home rather than take long trips or in some cases even drive across town. That being the case, the demand for fuel oil drops along with the prices. When you see fuel drive up to $5.00 per gallon or something along those lines you can be sure that there will be a significant price drop at some point in the near future. This however is a double-edged sword as while lower prices mean more travel, more travel means higher fuel prices.
All in all, prices are going to increase when the world’s crude oil market lowers inventories and yes, this does affect the price of home heating oil significantly. The good news is that while oil prices do tend to go up and down, fuel oil prices in NY stay relatively stable and are fairly inexpensive. Remember, electricity is 50% more expensive and other fuels might not burn as cleanly or as efficiently – let us get your heating situation under control. Give us a call today for pricing and heat your place up.
