Oil price bulletinIan Davies
The graph, showing the base price of Kerosene over the last 5 years won’t be a surprise to many of those households who rely on oil to heat their homes – although I’m pretty certain the rise over the last 2 years will probably have had an impact. The price of oil per barrel is used as the standard indicator of global prices – which reached $80 per barrel this year for the first time in 4 years, primarily due to global economies performing better than expected.
So what does this mean for you?
Prices could keep growing as demand looks like it will remain strong, which continues to outstrip supply due to a variety of factors including Donald Trump and the Iran embargo, alongside Venezuela’s ongoing oil crisis limiting production.
RPI: Ave price - Heating oil, per 1000 litres (Source ONS)
- Pence /1000 litres
- Pence /1000 litres
The industry uses a daily indicator by a company called S&P Global Platts that moves throughout the day based on news items. Recently the price went up and down a penny in a day due to potential issues with supply as a result of the adverse weather affecting the US coast. A simple tweet from Mr. Trump about Iran can also cause a spike in prices – this short video will give you some insight. OPEC currently have a huge impact on the price of Oil as does Russia’s desire to be number 1. It’s interesting to see what level of control Russia in fact has over global markets and economies!
Keeping your prices down
You can keep track of the prices yourselves but there are spikes that are hard to account for. The price jumped 8.5p in a week in May as you can see on the graph which caused price challenges for many homes and businesses. To assist with these unpredictable changes, TateOil has launched Freedom and monthly-pay accounts to help customers balance their bills throughout the year.
I personally monitor prices daily and so rather than advising that you do the same, I will gladly keep you informed of fluctuations in price as soon as we can possibly anticipate them. As these changes happen in real-time, it’s often hard to predict them – the good thing being they can drop as quickly as they rise although the graphs are showing an upward trend at present.
The best advice I can give at this stage is to get your orders in now for oil before the weather takes a turn and temperatures drop – as this will undoubtedly stimulate a rise in demand, only meaning one thing in terms of price. Some forecasters are predicting a drop in oil prices in 2019 which we’re keeping a close eye on and I will be the first to let you know of any up and coming changes. When we’re dependent on the actions of Vladimir Putin and Donald Trump however, it’s tricky.
Check the latest prices here Check Latest Prices here
Next Week. Potential impact of Brexit on Oil – Keep your eyes open for the next update.