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Home Heating Oil Prices - Don't Spend Too Much

by jeni123

18 May 2017

Many people heat their homes with heating oil, and prices fluctuate with the seasons. In the colder months, oil is in demand, and thus the cost goes up. In the warmer months, oil is not in demand and the prices go down. These prices can go up and down month to month, but generally the most expensive season of the year and the most expensive months to purchase oil is in December, January, and February in most parts of the country. Low inventory in the winter drives prices up - it's the law of supply and demand. It is a petroleum product.

Where It Comes From

The oil that is used to heat homes in the United States comes from a variety of sources including those on our own shores (domestic heating oil) and those across the sea (foreign). With more than eight million people in the U.S. using oil to heat their homes, the domestic heating oil supply would never be enough to meet the demand - thus, another reason the U.S. is dependent on foreign oil. Imported oil typically arrives in the U.S. from Venezuela, the Virgin Islands and Canada via tankers, trucks, rail cars, pipelines and barges. Typically, oil will arrive in the U.S. at a major seaport - and then be distributed to other areas of the country. Once the heating oil reaches its intended destination, companies and refiners will redistribute the oil to storage tanks or by truck, and then directly to the point of sale or to the customer's home.

What Determines Prices?

Prices are determined largely by the price of crude, but the expense to refine the oil and the marketing and distribution costs of the product also come into play when it comes to a per gallon cost.

How to Lower Costs

With the home heating oil prices going higher and higher, there are a lot of tips to help keep bills down. Taking plastic and covering the windows is one way of keeping out a draft. Keeping the thermostat at sixty degrees or lower can be helpful and turning the heat off when not home (as long as it isn't super cold with pets in the house) will also help you to cut costs. There are a lot of other ways to balance out the costs that come with having to shell out the home Heating oil prices. This is by cutting back on uses of other energy taking objects. Always cook with a full oven, hold back on opening the oven during baking as often as possible,

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