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Heating oil pricing
wwally
Posts: 69 Forumite
Can anyone explain how the heating oil supply chain works wrt prices and payments? There's obviously a long chain from a barrel of crude oil to my boiler, but I'd like to know specifically:--
At what point in time does my supplier get charged for his stock of oil? Is it when he orders it (like a domestic customer), when he gets a delivery or when he sells it on to me? Is it a spot price or fixed under contract?
Oil is such a volatile product I feel this must be hard to manage for a wholesaler - so he doesn't end up with tankfuls of high-priced oil, for example.
At what point in time does my supplier get charged for his stock of oil? Is it when he orders it (like a domestic customer), when he gets a delivery or when he sells it on to me? Is it a spot price or fixed under contract?
Oil is such a volatile product I feel this must be hard to manage for a wholesaler - so he doesn't end up with tankfuls of high-priced oil, for example.
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2 properties on rural South Wales farm
Electric - Fuse Energy £180pm, PV - EON.Next 4kW
LPG - Calor 1600 litres pa Heating Oil 2000 litres pa
3 wood burners from own woodland
2 properties on rural South Wales farm
Electric - Fuse Energy £180pm, PV - EON.Next 4kW
LPG - Calor 1600 litres pa Heating Oil 2000 litres pa
3 wood burners from own woodland
0
Comments
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1
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The supplier will obviously buy in bulk and hedge it, by that I mean insure against price, explanation here https://fueloilnews.com/2005/10/01/the-basics-of-hedging/0
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