Western Mass home heating oil prices are no stranger to volatility. This Fall seems to be no different. The marketing has been soft most of the year – with steady discounts throughout the summer. Prices are currently averaging below $2 per gallon in most areas. Good news for everybody that heats with oil in the Northeast!
OPEC greed means big savings this winter!
So what’s behind this year’s low price?
The quick answer is World demand and production levels. After record growth it seems that China’s economy is cooling. That means more oil on the world market. That leads to lower prices. However, in the past the oil producing nations would reduce production; and stabilize prices. This year it seems nobody wants to dial back production. That means more oil on the world market. That leads to lower prices. On top of all that – you have the Iran Nuclear Deal. When it’s implemented it will allow Iran to sell oil on the open market again. Speculators are already anticipating the glut of oil on world markets. That should mean even lower prices.
But remember, we’ve been through these cycles before. So enjoy the savings while you can.
For current home heating oil prices in your area visit: Western Mass Oil Prices