Last week, the political unrest in Egypt which saw the elected president Mohammed Morsi ousted from power by the military, resulted in a 6.9% increase in crude oil prices, the largest gain seen in one week since 2011. Prices are being driven by fears about supply issues given that, whilst Egypt isn’t an oil producer, it controls the Suez Canal from which a significant percentage of Middle Eastern oil is transported, and the fact that the markets are concerned as to whether the unrest will spread to other oil producing countries. Recent better than expected US employment figures also point to stronger demand for oil which will further drive up prices as the US economic recovery continues.
What does all of this mean for your heating oil prices? The BoilerJuice average home heating oil price chart shows a steady decline in the cost of heating oil from April 2013 until the end of June but we are now seeing those prices on the increase since early July and, if the unrest in Egypt continues or spreads, we may see these prices continue to go in an upward direction.
Summer tends to be the best time to buy heating oil because demand drops so, whilst oil prices are on the increase due to the unrest in Egypt, they are still lower than they were during last winter. Act now and get a competitive heating oil quote so that you can avoid any further price rises that may occur in the coming weeks and months.