Written on: October 29, 2021
Heating oil prices in New York—and everywhere else—will always ebb and flow because many factors come into play. Everything from supply and demand to the weather to geopolitics can influence the markets and the cost of all energy, including heating oil. And, as you may have guessed, the COVID-19 pandemic has also influenced where energy prices stand today.
You can view a history of heating oil prices in New York here.
Once again, as happened in the past, we’re seeing heating oil and other energy prices surge across the board. This is not uncommon in the energy markets, which are prone to volatility, but higher prices hurt just the same—especially on top of a still-lingering pandemic.
COVID-19 has played a large role in the current state of the market. Demand for oil sunk to deep depths as more countries went into lockdown in 2020. Global supply became diminished as producers responded by scaling back oil input. Now, with the wide availability of vaccines in most countries, people are traveling again and businesses have opened up. But global supply hasn’t caught up with all of this increased demand. When you match low supply with high demand, prices go up. Of course, this is true for many other commodities, not just for heating fuel.
We’re seeing this right now across the board with increased costs for consumer goods because of many tangles in the global supply chain. COVID-19 has played a role in this situation as well.
Right now, Wall Street speculators are not “bullish” on investing in the fossil fuel industry. They’re still skittish about how the crude oil market crashed and burned last year at the beginning of the pandemic.
In the Spring of 2020, crude oil prices fell all the way to negative $30 per barrel! Traders had to pay buyers to take oil! Since then, prices have been steadily rising.
Investors are also holding back as they watch legislators try to move toward more renewable energy. The irony is, the heating oil industry is making excellent progress with making their fuel more dependent on renewable energy too.
The heating oil industry is committed to helping to ease the impact of climate change with Bioheat® fuel — a blend of ultra-low sulfur heating oil and biofuels made from renewable sources.
Thanks to research and development being spearheaded by the National Oilheat Research Alliance (NORA), heating oil is being made more cleanly and efficiently than before.
The overall goal is to transition to even higher levels of Bioheat fuel, which will further reduce the carbon footprint and actually turn heating oil into a carbon-neutral energy source.
Read more about Bioheat fuel.
[h3] Hudson Valley Heating Oil Companies Stand Ready to Help
In times like this, people sometimes misunderstand how negatively higher prices impact local fuel dealers. Heating oil companies don’t make more money when prices rise—they actually make less.
It’s like when the cost of coffee, milk or orange juice rises. It’s not the local grocery store that is profiting. (That’s left to the Wall Street investors). Heating oil customers have a harder time paying their bills. They reduce expenditures. Heating oil companies may need to tap into their lines of credit more. Phones light up with questions from customers. So the sooner energy prices drop, the happier your heating oil company will be.
In the meantime, please reach out your heating oil supplier to find out ways they may be able to help you reduce your energy costs, or handle payments more easily.
Rest assured, your Hudson Valley heating oil supplier will do everything possible to ensure they can make deliveries—no matter the cost or difficulty they face.
Local, independently owned heating oil companies in the Hudson Valley work hard to ensure homeowners and businesses get the best prices possible without compromising on quality, safety or environmental concerns. They also ensure you have the heating and home comfort experience you deserve in several other areas as well, regardless of what’s happening in the market.