Why do oil prices rise and fall?
Home heating oil, natural gas, propane and electricity are traded on the commodities market which has a similar pattern to the rise and fall of the stock market. Home heating oil is one product that comes from the raw material referred to as crude oil. The market reacts to a number of situations including supply and demand, supply interruptions or excess production. As a rule, when OPEC (Oil Producing Exporting Countries) rises or lowers their prices we adjust our pricing accordingly. If the world oil prices rise it does not mean that we get a bigger share of the increase. We operate on a fixed margin between our cost of doing business and the price of home heating oil. Over the last 10 years when adjusted for inflation, heating oil is actually cheaper than it was in 1973. Crude oil will continue to fluctuate and we’ll continue to be available for your heating and cooling needs 24 hours, 7 days a week.
