Will heating oil prices increase following the decision to cut output?

RG2015
RG2015 Posts: 5,885 Forumite
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Will heating oil prices increase following the decision to cut output?

This is from the BBC News site.

Oil prices have surged after several of the world's largest exporters announced surprise cuts in production.

I know it is all speculation but I have noticed a 5% increase in my online Boilerjuice quote since yesterday. Is this the start of an upward trend?

Oh how I wish domestic users could be sheltered from massive price fluctuations like gas and electricity users are. 

https://www.bbc.co.uk/news/business-65157555

Comments

  • CliveOfIndia
    CliveOfIndia Posts: 1,331 Forumite
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    I suspect that prices may rise as a result of this, but probably not to a huge extent.  There are several factors that affect the price you pay for heating oil.  The global price of crude oil obviously has an effect.  But the USD/GBP exchange rate has a big effect - oil is always traded in USD, so fluctuations in the exchange rate can make a big difference to the price you pay.
    Supply and demand can make a difference.  In my experience it's always cheaper in the summer when there's a lower demand.
    Then there's the question of how and when your supplier bought their stock.  They may have millions of litres sitting in their tanks which they bought when the price was lower, and maybe that's enough to keep them going for several months.  Or they may have hedged their prices by trading futures & options.
    So, lots of factors at play which make it hard to make any kind of accurate prediction :)
  • mumf
    mumf Posts: 603 Forumite
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    Price has risen. Oil is reduced. Price will stay risen. The literal generation of people that have had cheap everything need to get used to the price of everything being as it is now. 
  • The_Unready
    The_Unready Posts: 601 Forumite
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    Literal generation? What's that? I can't even work out whether it's an auto-correct or not....
  • mumf
    mumf Posts: 603 Forumite
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    Literal generation? What's that? I can't even work out whether it's an auto-correct or not....
    A whole human generation. 25 years worth. 
  • Rodders53
    Rodders53 Posts: 2,144 Forumite
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    Dunno.  Enjoy the Kersose price lottery ;)

    Prices seem fairly low (61.5 - 64 p/l + vat) cf my last fill in October (82p+vat) on the sites that don't demand a email contact for a price to be sent to...

    NB that means Kerosene is waaay cheaper than the subsidised natural gas price per kWh (10.4 p?).
  • RG2015
    RG2015 Posts: 5,885 Forumite
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    Rodders53 said:
    Dunno.  Enjoy the Kersose price lottery ;)

    Prices seem fairly low (61.5 - 64 p/l + vat) cf my last fill in October (82p+vat) on the sites that don't demand a email contact for a price to be sent to...

    NB that means Kerosene is waaay cheaper than the subsidised natural gas price per kWh (10.4 p?).
    Lottery indeed.

    Prices including 5% VAT.

    Jan 2020, 50p/litre, March 2020 25p/litre, March 2022 £1.50/litre.

    During the last 3 years I have paid from 40p to 90p and just recently 66p

    I avoided the £1.50 but missed out on the 25p.

  • With the imminent collapse of the dollar I would say prices will rise.
  • orbit500
    orbit500 Posts: 54 Forumite
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    With the imminent collapse of the dollar I would say prices will rise.
    Checking my pay slip - yes, still GBP.
  • orbit500 said:
    With the imminent collapse of the dollar I would say prices will rise.
    Checking my pay slip - yes, still GBP.
    You haven't got it yet. The implications of the dollar collapse will resonate throughout the Western world. 
    The private federal Bank in America owns and controls all the central banks. Their fraudulent money machine is coming to an end. 
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