[ Nov 2014 ] – Great news for homeowners that heat with oil. Oil prices across Western MA are falling. Today’s average price per gallon is just $3.063. That’s down over 40 cents per gallon from just a few months ago.
Did I make a mistake buying under a fixed-price Pre-Pay Plan?
Statistically ( looking back over 10 years or more ) you will spend more for your heating needs if you buy at market rate. Pre-Pay Plans offer more than peace of mind. They usually shield you from the increases in oil prices that occur later in the heating season as demand peaks. As demand rises and reserves fall you’ll see the cost of residential heating oil climb. By purchasing your oil on a Pre-Pay Plan rate – you’ll be shielded from the increased cost of oil.
I just converted to Propane or Natural Gas!
Oil and LP or Natural Gas prices have become increasingly unstable. War in the Middle East. Shrinking reserves. The high cost of oil production. Oil speculators and commodities futures markets conspire to “play” with market price. And world economic conditions – like a sharp downturn in Chinese production – can leave more oil available on the open market. So, while oil prices are down – they won’t likely stay low. Oil producers will respond to lowered demand and lower prices by trimming back production.
Liquid Propane (LP) and Natural Gas prices should remain fairly stable. The US has huge reserves of natural gas. Hell, we’re even exporting it! And countries around the world are producing more and more natural gas each year. Production costs remain fairly low and the countries that produce and export are stable.