Cheaper Oil for Fuel?

WaxiesDargle

just got 900 litres @ 56.13

walllitter

Hi there W,
I'm looking to fill my tank just now, who did you get your quote of 56.13 from

sierrakilo

Cheapest quote I have had today has been with Homefuelsdirect......... @ 56.2 pence/litre anyone here used them before ?

home-heating-oil

sierrakilo wrote: »

Cheapest quote I have had today has been with Homefuelsdirect......... @ 56.2 pence/litre anyone here used them before ?

They are an aggregator / reseller so they may need to build up the volume before delivery. Be interesting to follow.

They seem to be part whichoilsupplier co uk and oilbuyinggroups co uk

Let us know who delivers and what you think of them.. The first half of your post code would be good so we know where they are quoting for.

G_M

So which way will prices go this summer? Fill up now or wait for 50p?

home-heating-oil

G_M wrote: »

So which way will prices go this summer? Fill up now or wait for 50p?

I heard that June is supposed to be hot so that will put pressure on the price.. But then it depends what happens to Brent crude prices which in turn is down to the unrest in the Middle East. Brent is at $110 today (yesterday) which should give a retail price of 44 pence per litre.

bernithebiker

home-heating-oil wrote: »

I heard that June is supposed to be hot so that will put pressure on the price.. But then it depends what happens to Brent crude prices which in turn is down to the unrest in the Middle East. Brent is at $110 today (yesterday) which should give a retail price of 44 pence per litre.

You need to think globally. Oil products are traded around the world. UK demand is tiny compared to the US or China. So a warm June will do nothing to your price as it may be very cold in China or India, etc.

If prices do sag in Europe, cargoes will head off to the East, it's a self-levelling situation.

And don't forget that heating oil is inextricably linked to diesel and Jet fuel so demand for these is important too.

And heating oil is not rigidly linked to the Brent price - it can move more or less.

home-heating-oil

bernithebiker wrote: »

You need to think globally. Oil products are traded around the world. UK demand is tiny compared to the US or China. So a warm June will do nothing to your price as it may be very cold in China or India, etc.

If prices do sag in Europe, cargoes will head off to the East, it's a self-levelling situation.

And don't forget that heating oil is inextricably linked to diesel and Jet fuel so demand for these is important too.

And heating oil is not rigidly linked to the Brent price - it can move more or less.

If it is hot in the UK the heating oil companies still need to sell product hence competition increases and prices drop. I totally agree with your global observations

bernithebiker

home-heating-oil wrote: »

If it is hot in the UK the heating oil companies still need to sell product hence competition increases and prices drop. I totally agree with your global observations

Fair point, but I think it depends on the company selling. Small, independent companies that need to keep cashflow going may indeed be forced to sell cheaper just to keep some money coming in.

But larger companies like Total will have a much broader outlook. If heating oil demand in the UK is poor, then not only will the refinery optimize for more diesel or gasoline, but it will also export any excess as a cargo destined for somewhere like ARA (Amsterdam/Rotterdam/Antwerp) or further afield. And if there is a contango in the market, (forward prices higher than current spot prices), then putting it into storage until the winter would be the best solution.

dazbo_2

Hi all i was so sick of being ripped off buy the oil companies that i switched off my aga in december and by mid jan the oil ran out so no boiler.
We also have a detached holiday cottage which is heated by electric only and our lecy bill for our house and the holiday cottage is £1200 approx per year.
When our oil ran out i got a couple of lecy heaters for our house and we got buy ok.
We are now considering going fully electric as anyone can produce electric (wind turbine in garden etc)
Oil is getting less and less, the price is getting HIGHER AND HIGHER and you cant make it or drill for it yourself In my opinion domestic Oil is old hat now.

lets stick together and switch to lecy this year then see what happens to heating oil prices

Let me know your thoughts

Ps does anyone want to buy an aga