The laws of supply and demand are at it once again with the US and Long Island Heating Oil Prices sliding following a weekly inventory check. The inventory data showed the US stockpiles of crude oil and petroleum are at an all-time high with stockpiles increasing by a full 6.6 million barrels by August 19, allowing for a total of 1.4 billion barrels. The Energy Information Administration stated that the ‘global gut’ of crude that has been a burden for oil prices over the last two years has not fully shrunk.
Anticipating Long Island Heating Oil Prices
This month, it seems that Long Island heating oil prices have risen by a full 10% in the wake of rumor or belief that production might actually be frozen. While the petrol stockpiles have been rising significantly, there have also been rises in other fuel stockpiles, including propane, diesel, and ethanol. To put it lightly, even though there has been a rise in price, there is absolutely no shortage – in fact the supply has never been better.
There are other factors at play, however. For example, a tropical wave in the Atlantic Ocean threatened a storm over the Gulf of Mexico which brought potential danger to a number of refineries in the region. This potential storm saw gasoline futures settling at 1.08 cents per gallon and diesel futures settling at 0.55 cents per gallon.
Home Heating Fuel Prices Affected by Production Drop
You know how it works by now; oil companies need their supply to keep their customers happy and as supplies drop, so do prices. Of course, sometimes it seems to work in the exact opposite manner. The supply of oil is at an all-time high, especially in the United States, but that doesn’t mean production is at a high. In fact, US crude production actually managed to fall by 49,000 barrels, which could definitely account for some of the price increases that we’ve been seeing. It is uncertain as to whether or not fuel oil prices will rise to an unfathomable rate, but we should definitely be prepared, especially with the recent production drop. Don’t count your fuel oil heater out of the game just yet though.
Good News for Future Long Island Fuel Oil Prices
When it comes right down to it, yes, there are some difficulties and inconsistencies going on in the market right now, but that doesn’t mean the prices are going to be insurmountable. The best thing we can do is watch and wait as the prices balance themselves out over the next few months. As production picks back up, and given the surplus that exists right now, we can probably expect that Long Island fuel oil prices will remain steady and your home will remain properly heated for the foreseeable future – especially through the long, cold winter months.
Nassau County Residents – Call 516-986-2293
Suffolk County Residents – Call 631-714-2999
