A closer look at oil prices

Dell M. CromieDear Friends,

As you know, the price you pay for heating oil can vary quite a bit from year to year. That’s because the market price of oil is tied to factors that are always changing.

Of these factors, the price of crude oil is the most important. Heating oil, gasoline and diesel fuel are among the many products refined from crude oil. The problem is that crude oil is a globally traded commodity, which means it’s subject to many forces that drive its value up or down.

Unrest in oil-exporting countries, new U.S. sanctions against Iran that will hamper exports, and other perceived shortages, often related to the weather, all contribute to the “fear factor” for commodities traders.

Their actions cause world oil-market prices to rise and fall on a daily basis.Locally, seasonal demand, operational costs (including overtime) and even competition between dealers can result in price variation.

All of this is beyond our control, but, as our customer, you can always count on a fair rate from us. Plus, we have ways of helping you control your heating costs. Please take a look in this newsletter: You’ll find helpful suggestions that can make your life much easier this winter.

Dell M. Cromie