There is always going to be a question of whether or not fuel oil costs are going to drop, especially as winter approaches, and this year we actually have an answer for you, just in time for the cold season. Bank of America has stated that the rebound in oil prices on Long Island will most likely taper off next year, with Francisco Blanch making the following statement:
“Petroleum demand in OECD (Organization for Economic Co-operation and Development) countries will likely remain a drag on global oil markets next year.”
It is assumed that there will be an increased demand for oil, particularly from OECD, which will cause an increase of 200,000 barrels per day. While this is a short-term prediction, the long-term prediction includes a projection of 12,000 barrels per day by next year.
Oil Prices on Long Island Affected by Demand
The demand for fuel oil is nothing new, but 2016 has seen that demand at an all-time high. It has been estimated recently that Americans have actually driven a combined three billion miles over the last year, but there are a few factors that will change this, besides the rising cost of fuel. The biggest factor or course is that many of the vehicles on the road are currently in the process of being replaced with more efficient models which puts a rest on the industry as well as the wallets of consumers – it’s definitely good news for everyone involved.
Next Year’s COD Fuel Oil Long Island Prices to Fall Significantly
To say that the fuel oil prices will be affected would be a gross understatement. The International Energy Agency or IEA estimates that global demand is actually going to slow from 1.4 million barrels to 1.2 million barrels per day in the next year, which will definitely change the asking price for each barrel. In other words, while we are currently operating with a major surplus in the industry, the implementation of more fuel-efficient solutions is definitely going to drive demand down significantly, which can’t be a bad thing for the end consumer.
A Steady Future for heating Oil Prices in Suffolk NY
There is little doubt that the fuel oil prices in Long Island, particularly COD prices are going to see a significant rise, and it might affect the average home user for a time, but as we said before, it’s going to even out and it’s only going to even out and eventually begin to lower once again as production catches up. We’re going to see some serious changes, and things will definitely fluctuate a bit with the upcoming winter. Now would be a great time to get your tanks refilled and call for COD fuel oil delivery in Long Island before the cold sets in.
