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Why has domestic heating oil not come down in price with falling crude prices?

April 26, 2017crude domestic falling heating Oil price prices

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Why has domestic heating oil not come down in price with falling crude prices?

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Domestic heating oil prices are subject to a number of complex interrelated supply and demand influences at both the global and national level. Right now the main reason we are not benefiting from lower prices is because of exchange rates and the falling value of the pound. Oil is traded in dollars and the value of the pound has slumped. For example, previously crude oil at $50 to the barrel would have been just 25. At today’s exchange rate, crude oil at $50 to the barrel equates to 35 – an increase of 10 per barrel.